The Andhra Pradesh government might push for fresh Power Purchase Agreements (PPAs) between APGenco and the two discoms in the State, following its withdrawal from the earlier PPAs signed in the united State. It is reliably learnt that the government has, on Thursday, sought legal opinion on whether the power generation company could proceed to sign the fresh PPAs, following the ongoing power turmoil. In all likelihood, the PPAs with APEPDCL and APSPDCL may be signed in a week, sources informed The Hindu .
The Governor for AP and Telangana, E.S.L. Narasimhan has reportedly sought detailed reports from both the States for perusal by the Ministry of Power, after which the process of fresh PPAs might gain momentum.
It has been the contention of the Andhra Pradesh government that the APGenco can withdraw from PPAs pertaining to 10 generating stations—eight ongoing and two under construction—as the agreements have not received the stamp of approval from the APERC. This absolves the government from the provision in the Andhra Pradesh Reorganisation Act stipulating continuation of existing PPAs for the ongoing and under-construction projects, it is felt.
