The Neeraja Mathur Committee appointed by the Central Government to solve the ongoing PPAs crisis between Telangana and Andhra Pradesh has made it clear to both the states that all the PPAs made before the state division have to be continued. The committee had heard the arguments of both the state officials and concluded that Andhra Pradesh can not cancel the PPAs made in the United State. The committee will once again have a hearing on 4th of this month with both the states and finalize the issue.
Telangana government argued that APGENCO is deciding Power Prices on the basis of these PPAs and they are very much in existence even though they are not approved. It also stated that PPAs can only be cancelling with mutual consents of Discoms in AP and Telangana. On the other side, Andhra Pradesh argued that it has all the rights to cancel the unapproved PPAs.
It is known that APGENCO has informed all the discoms of Andhra Pradesh and Telangana that they have cancelled all the Power Purchase Agreements (PPAs) that are made in United Andhra Pradesh. The PPAs are submitted to Electricity Regulatory Commission (ERC) before the bifurcation but they are not approved till date. Since there are no approved PPAs APGENCO is canceling all of them with immediate effect. APGENCO even sent a letter regarding the same to ERC also. This move was expected to make sure that AP use all of the power that is produced in its state.
