"Alleging that justice was not done to it in distribution of electricity, Andhra Pradesh is seeking cancellation of PPAs. It argues that electricity generated in a state should be used in the same state. It is also mulling legal options."
Hyderabad, June 20 - The government of Telangana has intensified its efforts to counter the move by the Andhra Pradesh government to cancel power purchase agreements (PPAs).

Telangana Chief Minister K. Chandrasekhara Rao Friday asked the officials to collect all the relevant material and submit the same to the union government.

He has asked Principal Secretary, Energy, Suresh Chandra to stay in New Delhi for few days for discussion with union government officials. The official already held talks with the union power secretary and National Thermal Power Corporation (NTPC) authorities.

With the Andhra Pradesh government's move threatening to plunge the newly created Telangana state into a power crisis, the chief minister Friday reviewed the situation with the chief secretary and chairman and managing director, Generation Corporation.

The government is making all efforts and taking necessary steps to see that the people are not put to any inconvenience, said a statement from the chief minister's office.

The government is also exploring the possibilities of purchasing power from available resources. There has been a positive response from two or three places in this regard, it said.

The Andhra Pradesh government through AP Genco appealed to Electricity Regulatory Commission (ERC) to cancel the PPAs which were entered in the undivided state by Genco and the distribution companies. The ERC, however, rejected the appeal and asked Andhra to continue the existing system.

Alleging that justice was not done to it in distribution of electricity, Andhra Pradesh is seeking cancellation of PPAs. It argues that electricity generated in a state should be used in the same state. It is also mulling legal options.

The move may deprive Telangana of 460 MW of electricity and trigger a crisis in the power-deficit state.


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