As soon as the YSR Congress Party formed the government last month, Reddy declared renegotiation of power purchase agreements as a key priority of his government, stating that this was part of a plan to expose the alleged corruption of the previous government.
He cited the large variation in prices quoted by the developers in competitive bidding versus those fixed in the PPAs. The Union Energy Ministry and power producers have already appealed to the state not to take any hasty decision in this regard as several issues determined the tariff at different points of time.
The state government has also decided to constitute a cabinet sub-committee to probe as many as 30 matters involving alleged irregularities, with the help of the state investigative agencies.
had attracted large investments in the renewable energy sector during the past five years