The Centre will have to play the mediator between Andhra Pradesh and Telangana in their dispute over sharing electricity when the Chief Ministers of the two States visit New Delhi next week.
While Andhra Pradesh Chief Minister N. Chandrababu Naidu will demand a renegotiation of the power purchase agreements (PPAs) between the two States, his Telangana counterpart, K. Chandrasekhar Rao, will insist on adherence to the Twelfth Schedule of the Andhra Pradesh Reorganisation Act, which states that existing agreements between the electricity distribution companies of the two States shall continue.
According to sources, both Chief Ministers could meet Union Power and Coal Minister Piyush Goyal in a bid to resolve the imbroglio over the intent of Andhra Pradesh for fresh power purchase agreements between APGenco and the two discoms in the State.
The Act clearly states that the “existing” PPAs with the discoms of the two States shall continue for ongoing projects and those under construction with the existing Andhra Pradesh Electricity Regulatory Commission (APERC) as a joint regulatory body for a period not exceeding six months.
No ambiguity“There is no ambiguity in the Act. The issue has to be resolved politically. The endeavour of the Union government would be to forge a consensus between the two States,” a senior official said.
Both the Chief Ministers are expected to be here to take up various issues related to their respective States and the controversy over the PPAs could figure prominently in their interaction with the Power Minister.
Andhra Pradesh Chief Secretary I.Y.R. Krishna Rao, who was here earlier this week, has already given a representation to the Power Ministry listing the reasons the State would want to renegotiate the PPAs.
ContentionThe Andhra Pradesh government has contended that it can withdraw from the PPAs pertaining to 10 generating stations — eight ongoing and two under construction — as the agreements have not been approved yet by the Andhra Pradesh Electricity Regulatory Commission.
However, the Telangana government has asserted that such a move would be against the letter and spirit of A.P. Reorganisation Act.
Allay apprehensionsSenior officials and power sector experts have allayed apprehensions that the cancellation of the PPAs could result in the collapse of the Southern Grid.
