Hon'ble Sri Y S Jagan Mohan Reddy

Chief Minister

Govt Of Andhra Pradesh

Amravathi Rd, Velagapudi, Guntur - 522503

Sub : AIPEF opposes GOI MoP's letter not to revisit PPA's , supports AP Govt's move to review PPA's

Respected Sir,

All India Power Engineers Federation (AIPEF) opposes the Government of India’s directions to Andhra Pradesh  Government  not to reopen the power purchase agreements (PPA’s) in the renewable sector  and supports the move of Andhra Pradesh Govt to revisit the one sided  power  purchase agreements  made in last few years at exorbitant tariff.

2. AIPEF fully supports your pledge to review these agreements done by  previous  government in power purchase agreements, resulting in exorbitant tariffs. The tariff in solar power in some PPAs is about Rs. 15 per unit whereas the present trend is less than Rs. 3 per unit.

3. You are aware that Energy Secretary Government of India  in a letter  to Chief Secretary Andhra Pradesh (Copy attached) has advised the state government to desist from the move to revisit the power purchase agreements (PPAs) in the renewable energy sector, viewing that such steps would affect the investors confidence and the country's renewable energy targets. Union Government’s letter comes in wake of the state government's orders to cancel all the infrastructure contracts awarded before April 1 by the erstwhile government

4. AIPEF is of considered view that every state government has right to revisit the power purchase agreements in the larger public interest who has to bear the brunt of higher tariff on account of these faulty PPA’s. If the Government of India can amend the tender conditions in the interest of investors, why the state government can not amend PPA’s in public interest.

The recent decision of Government of India to allow difference in cost of Indian coal and imported coal by amending the terms and conditions of the contract to favor some big industrial houses is in order then why the reverse of same in public interest cannot be done by the AP Government.

AIPEF is in full support of your Government to revisit faulty PPA's.

Thanking you with regards.

Shailendra Dubey

Chairman

CC:

1. Secretary, Ministry Of New and Renewable Energy, Block No 14,CGO Complex, Lodi Road ,New Delhi - 110003.

2. Chief Secretary, Govt Of Andhra Pradesh, Amaravati Rd, Velagapudi, Guntur - 522503, AP.