The government has constituted a committee on the Power Purchase Agreements (PPAs) on Monday to review, negotiate and reduce the high wind and solar power purchase prices and submit its report in 45 days. It was stated that the Power Distribution Companies (DISCOMS) in the State are in financial crisis because the power purchase dues amounted to a whopping ₹20,000 crore. The government has, therefore, formed a committee to provide affordable power to consumers and pull DISCOMS out of the red. Wind power was purchased at ₹4.83 per unit and solar from ₹4.50 to ₹6.80 per unit and a fixed charge of ₹1.25 per unit was paid to AP-Genco even when power generated by it was not purchased by the State. The TDP government spent ₹7 crore per Megawatt (MW) against ₹4.49 crore to ₹4.64 crore per MW of power generated in other States.

Source: The Hindu July 01, 2019 20:03 UTC