The ongoing PPAs crisis between Telangana and Andhra Pradesh has gone in to one more deadlock. Telangana government as usually argued that PPAs can not be cancelled unilaterally and Power has to be given on the basis of Andhra Pradesh Reorganization Act. On the other side, AP was a little more aggressive in its approach. It asked the Neeraja Mathur committee how it ignored legal issues and submitted the final report stating PPAs can not be cancelled. AP also argued that it is not right to submit the final report even before the final meeting.
Finally the committee agreed to withdraw the report and refer the issue to Solicitor General and Union Law Ministry and submit their views to Union Electricity Ministry. The committee did not give any deadlines regarding it. On the other side, Telangana government said that if PPAs are cancelled then it will not agree the additional 1.77% power to be allotted to AP from Central Power Projects. This 1.77% was added to AP due to discrepancies in power calculations in AP Reorganization Act. Telangana Government also threatened to stop the non conventional power about 750 MW allotted to AP. The Committee clarified to both the states that the issues can not be solved until both the parties leave the fighting attitude.