Andhra Pradesh Chief Minister YS Jagan Mohan Reddy is set to visit Amit Shah and a few other Union Ministers in Delhi on Monday. Jagan is expected to discuss various issues related to the state with the ministers.
According to reports, Jagan is likely to meet with Minister of Jal Shakti Gajendra Singh Shekhawat, as well as Minister of State for Power and New & Renewable Energy RK Singh, to discuss different subjects regarding Andhra Pradesh.
Jagan is expected to discuss the reasons for reverse tendering in the Polavaram project, as well as the results of the decision and the savings incurred, as announced by the YSRCP government. The CM is also expected to discuss the issue of review of PPAs (Power Purchase Agreements) with renewable energy producers.
In his first few months in office, Jagan reviewed many decisions made by his predecessor Chandrababu Naidu, which included the possible withdrawal of 21 PPAs, the agreements made between a company that generates electricity and a power purchaser. The government had claimed that the DISCOMs (power distribution companies) in the state were going through a financial crisis and one of the main reasons for this was the higher tariffs in the wind and solar energy PPAs.
The Union government has expressed dissatisfaction on multiple occasions over the YSRCP government’s decision to review Power Purchase Agreements (PPAs) signed by the previous TDP-led government in Andhra Pradesh. RK Singh has called the review decision ‘unfortunate,’ expressing fear that the move would affect foreign investments in the renewable energy sector. Singh reportedly said that Jagan was informed, even during his Delhi visit in August, that the cancellation of PPAs was a wrong move.
Singh reportedly said that it would be more advisable to take action in particular cases when there was concrete evidence of illegality, rather than cancelling all contracts without proper evidence.
Similarly, in the case of reverse tendering in Polavaram, Gajendra Singh Shekhawat had earlier said that the move would do more harm than good. The state government however has gone ahead with the process, and claims to have saved Rs 780 crore through the process.
Earlier in October, Jagan had met with Prime Minister Narendra Modi, where he is said to have put forth several demands for the state, including funds for development of backward areas, construction of Kadapa steel plant, Ramayapatnam port, and the Visakhapatnam-Chennai industrial corridor. The CM is also said to have brought up the issue of Special Category Status (SCS), a long-standing demand which could help with investments and employment opportunities in the state. Jagan is also said to have brought up the matter of SCS in his past meetings with Amit Shah but failed to get a positive response.