Power Purchase Scam In India


    Government entered into short-term PPAs at exorbitant rates ignoring the offer made by the Indian Energy Exchange (IEE). About 22,286 MU were proposed to be purchased from private generators.


    Leader of the Opposition in Assembly Y.S. Jaganmohan Reddy has alleged that the TDP Government entered into short-term power purchase agreements (PPAs) at exorbitant rates, ignoring the reasonable unit price offered by Indian Energy Exchange (IEE) on the pretext of surmounting power crisis in the State.

    Participating in the discussion on demand for grants in Assembly here on Saturday, Mr. Jagan said that the IEE raised its reservations in a letter to the AP Electricity Regulatory Commission.

    It questioned the purchase of power at Rs.5.11 per unit when power was available at Rs.3.77 per unit and at Rs.2.75 per unit during nights.

    He alleged that the government entered into agreement to purchase 15,000 million units though the APREC did not approve of it in 2015-16. During 2016-17, the distribution companies proposed to purchase 64,706 million units, including 39,480 MU from APGenco, Central government, and PSU units.

    About 22,286 MU were proposed to be purchased from private generators at a cost of Rs.11,000 crore, Mr. Jagan noted. Even after the IEE letter, the Discoms continued to buy short-term power at higher price though cheaper power was available.

    “Is it not obvious? It is a scam,” he said.

    Mr. Jagan also alleged irregularities in the purchase of imported coal at a high price though its price in the international and domestic markets had come down subsequently.

    Source : The Hindu