Centre’s Panel Meets Today As AP Rejects It’s Recommendations On Power PPAs

The High-Power Committee headed by CEA Chairman Neerja Mathur is meeting today in Delhi. This is the committee’s second meeting, which was supposed to be held On July 30. The meeting was post-posted as Telangana officials were unavailable that day, due to their trip to Chhattisgarh to finalize the power purchase between TS and Chhattisgarh.

The Committee has meanwhile sent to both states draft of it’s recommendations based on the arguments presented in the first meeting on July 14. It reportedly rejected the cancellation move of AP Government with regard to the PPAs and upheld TS share in power generated in AP too, as per the norms set by AP Reorganisation Act. AP took objection to this position of the committee and decided to present it’s objections in today’s meeting.

Another relief for TS has been the panel clarifying that the power sharing is valid to all PPAs – including that of Krishnapatnam and Hinduja plants. The panel also clearly told the non-conventional energy too would be shared as per the Reorganisation Act, unless the power generated is minute at a source.

The recommendations also include increasing share of AP in CGS by 1.77%. While Telangana agreed for this, it asked the panel to not lose sight of Gadgil formula while adding the extra power from Telangana to AP quota. AP was claiming 65 MW of extra power as part of the increase while Telangana pegs it at 10 MW.

However, TS stands vindicated with regard to the panel’s recommendation that PPAs are valid. This would help it avoid the unnecessary hardship it faced in last 2 months due to AP refusing to share power. While power deficit would continue to haunt TS even if AP accepts the recommendations, it would be less serious. AP accepting the recommendations is itself doubtful as the AP CM remarked this is just an ‘advisory panel’ and it’s recommendations are not binding. AP argues should consider legalities of the PPAs and review it’s recommendations.