Centre’s Committee Faults AP On Power PPAs, Upholds Telangana’s Rights

Telangana just got a breath of fresh air as the Centre’s committee decided AP is wrong in denying Telangana it’s share of power. The decision should come as a relief to Telangana which is mired under huge power deficit, thanks to AP’s misadventure.

The high power committee headed by CEA Chairman Neeraj Mathur reportedly came to the conclusion that AP has violated the AP Reorganisation Act in letter and spirit by unilaterally canceling the Power Purchase Agreements (PPAs) and refusing to let Telangana use it’s share of power - 53.89 per cent. The CEA’s decision is a severe blow to the unethical behavior of AP Govt. which put Telangana to tremendous hardship by forcing it to undergo big power-cuts by choking it without it’s fair share of power. The CEA has sent draft of it’s recommendations to both AP and Telangana which states the PPAs must continue. The recommendations also include increasing AP’s share to 52.12%.

Earlier, the CEA granted AP’s wish for additional power of 65 MW from Central Generating Stations in the very first meeting. That allotment was bases on usage of power for last 5 years. So, AP got an additional allocation of 1.77 % and it’s share is increased from 46.11 per cent to 47.88 per cent while Telangana’s share decreased from 53.89 per cent to 52.12 per cent.

AP’s argument for canceling PPAs rested on the technicality that the APERC never formally accepted the PPAs while Telangana argued that the accepting is mere formality in view of the scenario that the APERC has been levying tariffs as per the PPAs. The CEA accepted Telangana’s argument.

It is not yet clear what the committee decided on allocations from renewable energy sources or the Sileru hydel power project. More details are awaited. Once the draft recommendations are accepted by both the Governments, they would be forwarded to union energy ministry and the ministry will issue guidelines based on the recommendations.