26-07-201926-07-2019 12:48:55 IST
2019-07-26T07:18:55.076Z26-07-2019 2019-07-26T07:18:51.903Z - - 05-04-2020
Andhra Pradesh Chief Minister Jaganmohan Reddy received a setback as the High Court of AP stayed attempts on the decision of YSRCP government to review and renegotiate Power Purchase Agreements (PPA) by the previous TDP government. The court has issued a four weeks stay order and in this time, it will be hearing several petitions filed by various solar and wind power companies.
PPA is an agreement between a power purchaser and electricity generator/provider. Andhra Pradesh government contested that the decision to review all the previous agreements were well withing its powers as electricity is an item from the concurrent list. The state government also said that there was no threat or coercion on the issue. The state government has now been asked to file its counter and the case will be heard on August 22.
Earlier, Jaganmohan Reddy had declared that the government was trying to review all the PPAs so that the price differential can be passed down to the people through various welfare schemes. He had also alleged that there were a number of irregularities in the power agreements done during the previous TDP government and that they had to be studied thoroughly. Jagan's decision to review all the PPAs had received huge flak from a number of power companies.
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