The Jaganmohan Reddy government has not made any corrective steps till now on the cancellation of PPAs with solar companies. The Centre has taken objection to this several times already. Once again, Union Minister RK Singh commented that everybody should abide by the Power Purchase Agreements. Only this will bring investments. Otherwise, the power generating companies will not show interest in India.
Singh’s comment was obviously made keeping in view of the Jaganmohan Reddy government’s controversial decisions. Jagan’s unilateral decisions have already hit investors’ confidence in Andhra. This is spreading to other parts of the country.
In the coming years, the power generation will have to go up by three times in accordance with the rising demand. This cannot be achieved if PPAs are dishonored and companies are harassed like in Andhra Pradesh. The Union Minister made indirect remarks against Jagan Circar in the presence of Power Ministers and Secretaries of all states. Now, speculation started on future tougher stand of Centre against AP PPAs issue.
