The Delhi-based ‘Centre for Financial Accountability’ (CFA) has asked whether AP Chief Minister YS Jaganmohan Reddy has adopted double standards over the Power Purchase Agreements (PPAs). Why is Jagan discouraging the lower cost PPAs of eco-friendly solar companies? Is he favouring the higher cost PPAs of thermal power plants?
It is well known Jagan Circar has cancelled PPAs of solar companies saying that their Rs 4.54 unit cost is very high. But he is not taking any similar action in respect of the thermal PPAs whose unit cost is Rs 5.75 which is clearly higher. Moreover, this is not eco-friendly energy like solar power.
The CFA, which is a research organisation, comments on the economy and the governments’ financial decisions that have impact at the national level. Jagan’s arbitrary cancellation of PPAs has stirred a nationwide debate. He is sticking to his decision despite cautionary warnings given by the Centre and foreign embassies. Now, national organisations like CFA have started passing critical comments on Jagan policies. CFA experts say that negative policy towards solar and wind power companies will not make good sense both economically and environmentally.
The article appeared in Telugu360.com, can be accessed here.