The Hindu : Front Page : PPA issue rocks Assembly

Online edition of India's National Newspaper
Wednesday, Dec 14, 2005

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PPA issue rocks Assembly

Special Correspondent

YSR, Chandrababu Naidu trade charges, blame each other

HYDERABAD: Power purchase agreements (PPAs) signed by the TDP Government rocked the Assembly on Tuesday, with Chief Minister Y. S. Rajasekhara Reddy and Leader of the Opposition N. Chandababu Naidu trading charges.

The over two-hour discussion during question hour on review of PPAs, raised by former Energy Minister K. Subbarayudu (TDP), witnessed sharp exchanges between Dr. Reddy and Mr. Naidu. Both blamed each other for ruining the sector. Allegations of kickbacks, vested interests, mention of "big boss" and the TDP and Congress taking credit for reforms marked the acrimonious discussion.

Later, CPI (M), CPI and TRS members walked out, accusing the Congress and TDP of wasting time hurling accusations and failing to keep PPA files with Speaker K. R. Suresh Reddy.

Mr. Subbarayudu charged the Government with receiving kickbacks in order to ignore the expert committee report on PPAs.

Energy Minister Mohd. Ali Shabbir denied the charge. But Finance Minister K. Rosaiah joined issue by accusing the TDP regime of being a major beneficiary of PPAs. He said irrational decisions had forced the Government to pay money to companies which had not supplied power so far. The Government would face more problems as the Gas Authority of India Ltd (GAIL) refused to provide supply to four power plants claiming shortage.

Irked by the charge, Mr. Naidu dared the Government to initiate action, if there were irregularities. Claiming credit for reforms, he stated PPAs were signed by the Congress Government in 1994.

He accused Dr. Reddy of shielding his close relative who was constructing a mini power project on the Rajolibanda Diversion Scheme (RDS). He demanded a white paper on the 22 projects cleared by the Government.

YSR's intervention

Intervening, Dr. Reddy faulted him for signing "foolproof" agreements which benefited the companies. "The Government has no chance of reviewing the decisions as the companies have an advantage on every front," he added. GAIL's refusal to make supplies next year would force the Government to shell out Rs. 1,020 crores to GVK, Spectrum, Lanco Kondapalli and Gowthami.

Dr. Reddy said PPAs were signed between 1995 and 1997 by the TDP Government and mentioned dates to support the claim.

He ridiculed Mr. Naidu's claim that free power was possible because of reforms initiated by TDP regime.

He said CRISIL rating had put Andhra Pradesh on top in power sector performance. To the charge on RDS, he denied favouring anyone, including his relative.

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