State to press Hinduja for fresh deal on power
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The state government will ask Hinduja Power Corporation Limited to enter into a fresh Power Purchase Agreement with the state power utilities. As per the new agreement, the Hinduja would have to sell the entire power it produces to state utilities for a fixed period of more than 15 years. The methodology of fixing the rate adopted in previous PPAs with private producers like GVK, Spectrum and Konaseema would be followed in Hinduja’s case also.
Official sources told this newspaper that the previous offer of 25 per cent power at the rate fixed for NTPC's Simhadri stage II and 58 per cent power at a slightly higher rate would no more be valid. “Chief Minister Kiran Kumar Reddy was explained about the advantages of the new deal,” a senior official pointed out. The government is of the view that Hinduja, if it is asked to pay the fees and arrears to the government, will add these costs to the power tariff, and it will go up.
“The government can avail 100 per cent power at cheaper rate by forgoing certain fees and charges,” the official said. There were, however, no takers among the bureaucrats heading different departments, for the proposal of waiving fees and arrears, particularly in the wake of ongoing Central Bureau of Investigations probe into several scams.
“Who is going to risk going to jail or getting chargesheeted by taking such a hypersensitive decision involving public money amounting to hundreds of crores of rupees,” a senior bureaucrat said. The officials were worried over their orders becoming a subject of scrutiny in future. “Earlier, we are insulated by the Cabinet but now the Central Bureau of Investigation probe establishes that even Cabinet decisions can be faulted,” the officer pointed out.
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