CM Revanth Reddy Orders Comprehensive Study on Power Purchase Agreements (PPAs) and Unveils Plans for New Electricity Policy
Hyderabad, January 10 – Chief Minister Enumula Revanth Reddy chaired a high-level review meeting at the Secretariat on Wednesday, focusing on the power department’s functioning. The CM directed officials to conduct an exhaustive study and submit a detailed report on all Power Purchase Agreements (PPAs) made by the State Power Distribution Companies (Discoms) with power generation companies from 2014 till now.
During the meeting, CM Revanth Reddy emphasized the importance of the report, which should encompass the provisions of electricity contracts, permissions obtained from the State Electricity Regulatory Council (ERC), and the prices associated with these contracts. He specifically instructed officials to investigate the reasons behind agreements made to purchase electricity at high prices and mandated future purchases from the open market at lower rates.
Addressing the need for a robust power infrastructure, CM Revanth Reddy ordered an examination of the feasibility of establishing new power stations in the state. The aim is to ensure a continuous 24-hour power supply, meet growing electricity demands, and expedite the completion of under-construction power stations. The CM emphasized the importance of preventing electricity misuse and enhancing quality while maintaining a proactive approach to prevent disruptions in supply.
Announcing the formulation of a new electricity policy for the state, CM Revanth Reddy highlighted the necessity for comprehensive solutions to address the existing challenges in the power sector. The upcoming policy will be crafted after studying electricity policies from various states and engaging in extensive discussions with experts and political parties in the assembly. The CM expressed his commitment to designing a superior electricity policy compared to other states, emphasizing the importance of input from all stakeholders.
As part of the commitment to the people, CM Revanth Reddy reiterated the promise to provide 24 hours of free electricity to farmers in the state. He instructed officials to develop plans for the Grihajyoti scheme, ensuring free electricity up to 200 units for households, in line with the election promises. The CM emphasized the need to prevent electricity misuse, enhance quality, and implement preemptive measures to ensure uninterrupted electricity supply.
The comprehensive review meeting also discussed the steps to provide free electricity to household consumers up to 200 units monthly under the Grihajyoti scheme, covering power generation, purchases, demand and supply conditions, and the financial performance of discoms.
Key officials, including CS Shantikumari, Finance Special CS Ramakrishna Rao, Irrigation Secretary Rahul Bojja, Trans Co CMD Rizvi, TSSPDCL CMD Musharraf Farooqui, CMO Officers Principal Secretary Seshadri, and Special Secretary Ajith Reddy, actively participated in the meeting. The Chief Minister’s proactive approach and commitment to a comprehensive electricity policy are expected to pave the way for significant improvements in the state’s power sector.
