What the Central government has warned is now coming true. Chandrababu Naidu has also given similar cautions. Now, corporate power companies are viewing Andhra Pradesh with suspicion. Fitch Ratings, a global credit rating agency, has said that the Jaganmohan Reddy government’s move to review PPAs has given a very bad signal to the corporate industry. These companies will face problems in their financial credit flows once the PPAs are reviewed. The overall sentiment is being affected because of this. The anti-industry action by one state will disturb the investment climate in the entire country.
Fitch has made a statement that very soon, AP will have to face adverse consequences and reactions from both the corporate industry and also the Central government. These observations were made after the Jagan Reddy government gave ample indications of its decision to go ahead with the review of PPAs, confronting the Centre and ignoring Union Minister RK Singh’s warnings.
Meanwhile, Chandrababu accused the ruling YCP of throwing the state into darkness with its ignorant policies in power sector. He said that Jagan Reddy’s Sandoor Power Company in Karnataka is getting greater rates compared to the rates being given in Andhra Pradesh. Is Jagan not looting public money there? Is he ready to give power at reduced rates there? Naidu asked.
