Rs 10,045 cr Loss by DISCOMs Govt's own-making, says CITU

Visakhapatnam: CITU State president Ch. Narsinga Rao on Thursday said the deficit of Rs.10,045 crore shown by the DICOMs of Andhra Pradesh is due to ill-conceived policies of the government over signing of long- term power purchase agreements (PPAs) with the gas-based power plants.

Rao, who lodged his objections at the three-day public hearing conducted here in virtual mode by the AP Electricity Regulatory Commission (APERC) on Aggregate Revenue Requirement & Tariff filing for financial year

2022-23, told Bizz Buzz on Thursday that the government is paying huge amounts to Vedagiri and GVK plants due to PPAs signed for supply of 1495 mw. Similarly, he alleged that the government is paying a hefty amount, more than the prevailing market price to Hinduja National Power Corporation Ltd (HNCPL) which has its power plant near here with an installed capacity of 1040 mw.

He said there was no proper reply to their objections filed to APERC on the reasons for incurring losses by the DISCOMs.

The three-day public hearing at the corporate office of APEPDCL in Visakhapatnam by APERC Chairman Justice CV Nagarjuna Reddy along with its members Thakur Ram Singh and P Raja Gopal Reddy concluded on Thursday. Top officials from APEPDCL, APCPDCL, and APSPDCL took part through video conference due to the pandemic.

Narsinga Rao said there was no justification for the Cabinet decision for a 25-year agreement for buying power from the 2x800 Sri Damodaram Sanjeevaiah Thermal Power Station near Krishnapatnam, a joint venture with AP Genco and its partner. He said there was no transparency in PPAs.

He said efforts were made to ink a pact from Adani Group to buy solar power by signing an agreement for 25 years at a time when the power production cost is falling year after year.