Legal action against Naidu in power purchase agreements

Andhra Pradesh chief minister YS Jagan Mohan Reddy alleged 'massive corruption' in Power Purchase Agreements (PPAs) signed by the previous TDP government. He also ordered legal action against the then chief minister, energy minister and senior officials who entered into the agreements.

Amaravati (AP):Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Wednesday ordered legal action against his predecessor N. Chandrababu Naidu in connection with the agreements entered into by the previous government for the purchase of solar and wind power.

Alleging that the agreements with solar and wind power companies caused Rs 2,636 crore loss to the state exchequer, the Chief Minister asked officials to take steps to recover the amount.

Jagan Reddy said there were huge irregularities in the power purchase agreements and ordered legal action against the then Chief Minister, Energy Minister and senior officials who entered into the agreements.

According to an official release, the Chief Minister ordered the constitution of a cabinet sub-committee to probe the corruption by the previous Telugu Desam Party (TDP) government headed by Naidu.

The panel will look into 30 issues. It will be assisted by the Anti-Corruption Bureau (ACB), Crime Investigation Department (CID) and Vigilance and Enforcement.

Jagan Reddy announced this during a meeting on irregularities in power purchase agreements. He wondered why the government had to buy the power at a rate much higher than the competitive bidding price.

He formed another committee to renegotiate the agreements with solar and wind power companies. The Chief Minister said if necessary the agreements will be cancelled.