In yet another jolt to AP CM YS Jaganmohan Reddy, the BJP-led NDA government at the Centre has decided to bring an ordinance next month to check any state government from reviewing or scrapping the PPAs (power purchase agreements) that were signed by previous governments.
Jagan has decided to review all the PPAs signed by previous TDP government in AP after he became CM in May.
This was strongly opposed by private investors in the power sector both nationally and globally.
They criticized Jagan for damaging the investment climate in the country to settle his personal political scores with previous CM N Chandrababu Naidu.
The Central government has also stepped in to resolve the crisis but Jagan maintained an adamant stand.
Despite Central government warning that no one will come forward to make investments in AP, if Jagan resorts to ‘vindictive politics’, there was no change in Jagan’s stand.
To prevent these kind of incidents in future, the Centre has decided to bring an ordinance in January to amend Electricity Act, 2003.
Under this, no one has power to review or scrap any PPA unless if it involves grid safety issues.
If anyone scraps PPAs for political or other reason, they have to pay the entire cost of investors.
This will check CMs like Jagan in future who give more importance to satisfy their ego and take revenge on their political developments at the cost of development and future of state.
