One does not know how much truth is there in the statement of YSR Congress party general secretary and Rajya Sabha member V Vijay Sai Reddy that the decision to review power purchase agreements and call for reverse tendering of Polavaram project works by the Jagan Mohan Reddy government had the support and blessings of Prime Minister Narendra Modi and BJP national president Amit Shah.
But, according to a report published in a Delhi-based national daily, the Prime Minister’s Office has intervened in Jagan’s decision to review PPAs signed by the previous Telugu Desam Party government.
Apparently, several foreign investors who had invested huge money in solar and wind power projects in Andhra Pradesh took up the matter with Modi.
Following his instructions, the PMO wrote to the Union energy ministry to take appropriate action to save bank loans amounting to Rs 37,000 crore from turning into bad debts.
The report said the PMO has asked the ministry of new and renewable energy (MNRE) to examine the matter of PPAs and find a quick solution.
“The PMO directive came after lenders expressed concern that loans extended to projects generating about 8,000 MW of wind and solar projects in Andhra Pradesh (AP) could turn into non-performing assets, or bad loans. Foreign investors were fretful of the state government reneging on signed contracts,” the report said.
It is learnt Modi told Jagan when the latter met him in Delhi recently that the state should honour the contracts.
“Following this, Jagan has softened his stand and told the Prime Minister that the state would not review all the PPAs, but only those where there is a sufficient proof of any irregularities,” the report said.
It is understood from the officials of the state government that such cases may not be more than three or four.
Action against them could be taken as per the law after proper investigation, the media report quoting the official said.