Showcasing Andhra Pradesh as a desired destination for investment and trade on a global platform, Chief Minister Y.S. Jagan Mohan Reddy has sought to justify the government’s two ‘controversial decisions’, renegotiation of Power Purchase Agreements (PPAs) and enactment of a law to provide 75% quota in jobs for local youth.
“The government had to take a few tough decisions as the people reposed faith in us and gave an overwhelming mandate,” he said. The Chief Minister was addressing the delegates of over 30 nations at the Diplomatic Outreach Programme, jointly organised with the Economic Division of the Ministry of External Affairs (MEA), here on Friday.\
Defending the government’s decisions, Mr. Jagan urged the gathering to ‘look at the other side of the story’. The other side of the narrative of cancellation of PPAs other than what was reported was that the cost factor had been going upward. Over ₹20,000 crore had been pending for the past 20 months and the discoms were unable to pay the bills. It would reflect on the cost and the new investor would have to pay more, if the deal continued and power was purchased at a higher rate, he said. “We are honest enough to tell the reality and we are firm in our policy of renegotiating PPAs. Such a move will instil confidence among investors as we cannot procure power at a higher cost. We had to take a bold decision and that is what we have done.”