This comes in the backdrop of Y. S. Jagan Mohan Reddy-led Andhra Pradesh government’s plan to reopen the power purchase agreements inked under the N. Chandrababu Naidu-led government. According to a Andhra Pradesh government order dated 26 June reviewed by Mint, a Cabinet Sub Committee has been set up to “identify the person/persons/institutions responsible for prima facie mala fide decisions and actions, and recommend appropriate action." The Andhra Pradesh government has gone ahead with its plans despite the Union government’s efforts to impress upon the state to not do so given the action to revisit PPAs will shake investor confidence. The union power ministry has proposed a “power sector council" to address issues between the Union and state governments as part of its 100-day action plan for the second term of Prime Minister Narendra Modi’s government. Other proposals include separation of wire and power supply business, setting up a pan-India power distributor and building renewable energy management centres.

Source: Mint July 04, 2019 03:24 UTC