Scam in the purchase of power in Andhra Pradesh

Scam in the purchase of power in Andhra Pradesh - Sakshi Post

Favouritism and nepotism play a big part; the govt is purchasing power from outside for a lesser price, but is paying more to the private power plants within the state. What is more shocking is, that the govt itself wrote to the APERC (Andhra Pradesh  Electricity Regulatory Control) to raise the price of the short-term  purchase of power, showing power shortage in the state as proof to use as an excuse. 

It also signed an MOU to pay the maximum price to some of the power plants within the state. Simhapuri Plant, belonging to the TDP MP, Nama  Nageswara Rao is one of them, which is another proof of the covert understanding between the Congress and TDP.

The state is reeling under severe shortage of power, hence the govt is purchasing power from private power plants. It decided to purchase 2000 Mega Watts of power from June 2013 to May 2014 from the power plants within the state, and from outside. But doubts arise about favouritism shown to the private power plants, belonging to the Congress leaders or  friends in the TDP as they are being paid a higher rate - more than what is paid to power purchased from  outsiders.

It is a common practice to pay less for any product available locally ,and pay a higher price for those purchased from outside. But strangely, the state govt  is paying Rs 4.30 per unit of power purchased from outside, whereas it is paying Rs 5.45 per unit of power purchased from the power plants within the state. The govt fixed Rs 6.07 per unit of power as the price to be paid to Simhapuri and Meenakshi power plants in Nellore District.

The power corridor within the southern states is stable, but  the  power corridor from states other than the southern states is  limited only to 1300 Mega Watts. There is fierce competition among the southern states like Tamil Nadu, Karnataka , Kerala and Pondicherry to grab their share of power from this corridor.

The govt naturally is obliged to pay more for the power  purchased from outside, but strangely it is paying more for the power purchased from the plants within the state ! It even asked the APERC to raise the price for the purchase of short term power , which gave rise to the speculation that the govt had allowed private power plants to reap a lot of benefit . This facility being given to the private power plants has resulted in the govt spending 900 crores more, which will be recovered from the people in the state in the form of heavy amounts as electricity charges and adjustment charges.

- Sakshipost

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