Cancelling power agreements a threat to investment: Union Power Ministry

Jagan government is regularly reviewing the decisions made by Chandrababu Naidu's government, this time they are moving ahead towards the cancellation of Power Purchase Agreements (PPAs).
PPAs are agreements made between a company that generates electricity and a power purchaser; Government is planning to cancel 21 PPA's.
But Union Ministry disagrees with this decision of YSRCP government and called it 'unfortunate'.
RK Singh, Union Minister for Power and New & Renewable Energy, had warned CM Jagan in last month's Delhi visit about the loses they may incur in foreign investments in the renewable energy sector.
Over RK Singh's questions CM Jagan replied, “We have inherited a bankrupt exchequer with a huge deficit of Rs 2.62 lakh crore, the DISCOMs’ unpaid generator dues of Rs 20,000 crore and accumulated losses of DISCOMs(power distribution companies) of Rs 15,000 crore.”

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