Telangana Government Proceeds Cautiously on Alleged Power Purchase Irregularities
The Telangana government is taking a slow and careful approach regarding allegations of irregularities in power purchase agreements (PPAs) made by the previous Bharat Rashtra Samithi (BRS) government under former Chief Minister K Chandrashekhar Rao. Despite receiving the Justice Madan Lokur Commission’s report on these alleged irregularities over a month ago, the current administration is ensuring all necessary legal and documentary evidence is in place before taking any action.
A team of legal experts, led by the State Advocate General, is thoroughly analyzing the findings of the report. Officials have noted that the irregularities outlined in the report include legal and administrative lapses, as well as alleged misuse of power by the previous government. Establishing these claims with proper evidence is a priority before moving forward.
One key issue highlighted in the report is the financial burden caused by delays in payments to the Chhattisgarh government for power purchases. These delays reportedly cost the Telangana exchequer over ₹500 crore in fines and interest. Additionally, the BRS government faced further challenges, including a notice from Power Grid for failing to pay a ₹250 crore fine related to the cancellation of a 1,000 MW power corridor project.
The Commission also pointed out flaws in the location of thermal power projects constructed by the BRS government. It criticized the decision to build thermal plants far from coal mines, defying guidelines from the Central Electricity Authority, which had recommended placing them closer to coal sources. For example, the Yadadri thermal power plant’s location led to increased costs for coal transportation and power generation, adding an extra ₹1,600 crore burden.
Another issue raised by the Commission was the use of outdated technology in constructing thermal power plants. This decision may have negatively impacted the efficiency and cost-effectiveness of the projects. Legal experts are currently examining these findings to determine their validity and potential consequences.
Chief Minister A Revanth Reddy, Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka, and senior energy officials recently held a review meeting to discuss the Commission’s report. The meeting confirmed several administrative lapses, but the government is awaiting legal opinions before taking any definitive action. For now, the state is proceeding cautiously to ensure that any steps taken are backed by strong evidence.
