Home / Bifurcation Blues / AP Bullies CEA To Withdraw It’s Recommendations On PPAs

AP Bullies CEA To Withdraw It’s Recommendations On PPAs

AP Government blocked a bid by the Neeraja Mathur Committee to give Telangana it’s due share in power, as per the AP Reorganisation Act. In the 2nd meeting held in Delhi yesterday, AP questioned the locus standi of the Committee to oversee the PPA dispute between both the states. This brings the issue back to square one. AP’s stance was always questionable as AP CM Chandrababu Naidu declared even earlier that the Committee is just an advisory body.

The Committee held it’s 1st meeting on July 14th and both states presented their arguments. Based on the arguments, the Committee sent a draft of its recommendations last week to both the state governments. AP which didn’t question the authority of the high-level committee constituted by Centre earlier has now raised the question as the draft’s recommendations went against it’s wishes. Telangana has lost close to 1300 MW of power because of AP’s defiance of the AP Reorganisation Act. Cancellation of PPAs has been the major concern for Telangana and with the Committee declaring the cancellation illegal, Telangana is supposed to get it’s due share, which would mean it can tackle it’s power crisis. But AP refused to budge and demanded the whole dispute be directed to law ministry now and the legality over the PPAs should be examined.

So CEA’s draft recommendations now are as good as dead. It is clear AP wants to prolong this dispute by questioning every authority. AP took similar stand when the ERC earlier recommended the same to AP – upholding PPAs. As the dispute rages, AP is sitting pretty using the power generated in it’s state which is supposed to be routed to TS. So with delay, it’s only loss of TS. Now the issue goes to law ministry. Even if they uphold PPAs, AP can still question them and drag this issue to the courts, squeezing Telangana with the power deficit.

Meanwhile, while Telangana accepted the 1.77% increase in allocation of power to AP from the Central Generating Stations (CGS), it refused to part with that part of power till AP comes clear on PPA cancellation. TS also asked CEA to review the 1.77% as per Gadgil formula and correct the quantum of power to be adjusted from 65 MW to 10 MW.

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