The Andhra Pradesh High Court has issued stay orders on the proposed review of the Power Purchase Agreements by the Jaganmohan Reddy government. The Court ordered the AP Government to file its counter to the arguments placed by the companies. About 24 wind and solar power companies filed the petition in the Court seeking orders to stop the Jaganmohan Reddy government from reviewing tariff and cancelling the PPAs which are made for a period of 25 years. The companies argued that the high-level committee set up by the AP government to review the PPAs is unconstitutional and against the spirit of the agreements already reached.
The power companies contended that the PPAs were approved by the Electricity Regulatory Commission. So, the AP Energy Department and the APSPDCL have no powers to cancel these PPAs. But these top officials are writing letters threatening to cancel the agreements if the prices are not reviewed. The Jagan Reddy government is facing an uphill task as the power companies backed by the Centre are going ahead for a head-on collision with the YCP government.
