Vijayawada: In a setback to the state government, the high court on Tuesday scrapped the setting up of a high- level negotiation committee to review Power Purchase Agreements (PPAs).
The high court gave an interim order directing the government to honour the PPAs with power producing companies. The high court also directed the Andhra Pradesh Electricity Regulatory Commission (APERC) to decide new tariffs within six months.
Soon after assuming the office, the YSRC government had decided to review all PPAs with wind and solar power generation companies. Accordingly, GO 63 was issued to constitute a high-level negotiation committee to review tariffs for wind and solar power.
The government move, especially the terms of reference given to the high-level negotiation committee, had created ripples among the companies having PPAs with the government. The companies moved the high court with a bunch of petitions challenging the GO 63.
They argued that though it was named as negotiation committee, there was no room for negotiation as the government threatened to cancel the PPAs if they did not agree to reduce tariff. The companies argued that the government could not force them to reduce tariff as they were decided in a competitive bidding.
Source: timesofindia.indiatimes
