The power purchase agreement that Andhra Pradesh entered into with NTPC Kudgi Thermal power plant, during the N Chandrababu government, was at exorbitant rates, alleged Andhra Pradesh Energy Minister Balineni Srinivasa Reddy.

Addressing media, Reddy alleged the PPA was signed at ₹11.68 per unit when solar wind power was available at ₹4.80 per unit causing a huge loss to public exchequer.

Seeking to highlight “irregularities,” the Minister said 392 million units (MU) were purchased during 2019 at inflated rates and ₹317 crore was the fixed cost paid irrespective of the quantum of power the State purchased.

The Minister said, “The State government, on September 23, 2010, signed a PPA with NTPC Kudgi. After the bifurcation, 360 MW of power was allotted to Andhra Pradesh. The State government has lost ₹562.4 crore due to this PPA. Due to this, ₹274 crore was wasted as fixed cost and ₹288.4 crore towards additional power purchase cost, he said. As per the PPAs made by the Naidu government, with solar and wind power plants, the government has reduced the power purchase from NTPC Kudgi, where the cost of a unit is ₹3.58.

And it has started to purchase solar and wind power at ₹4.84 per unit.

The Minister clarified that the present government’s decision to purchase power at lower cost has brought down the costs.

The Minister said the previous government, on October 1, 2018, purchased 9.92 MU of power at ₹5.99 per unit. However, on October 1, 2019, under the present regime, 23.1 million units of power was purchased at ₹3.33 units and saved ₹2.66 on every unit compared to the previous year.

He said the State’s decision to review the PPAs has saved public money as energy was purchased at lower price when compared to the previous year.

Sharing details of the power purchase made in the recent days, he said the power purchase cost was lower than that purchased during the previous regime.

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