Electrical PPAs signed during Siddaramaiah’s govt to be reviewed for irregularities: Sources

11:26 AM Sep 12, 2022 | Team Udayavani |

Bengaluru: BJP government in the state is apparently looking into the electrical power purchasing agreements (PPAs) signed with private players when opposition leader Siddaramaiah was in power.


Rumors are going around in the political circles that BJP is trying to use the irregularities in the PPAs to counter the opposition’s allegations of corruption in the form of ’40 percent cut.’

Sources said that some PPAs signed before 2014 were found to be dubious. Taking advantage of the temporary power scarcity, the non-viable long-term contract were allegedly signed at higher rates in an opaque manner, which have given rise to suspicion, sources added.

The conditions of the agreements were reputedly drafted to favor the private companies. The pricing, the duration of the contract, and other terms were allegedly put together to benefit private companies causing a loss to the exchequer, sources said.

Moreover, there are allegations that a uniform rate was applied for all the sources of electricity. The average cost of wind and solar power sources has not been taken into account. The specific time frame was also ignored while fixing the maximum rate, sources added.


PPAs signed for a 25-year period fixed the purchase of power at Rs 11 per unit. This may cause a loss as high as Rs 2,000 crores to the public purse.  For this reason, the government is in the process of reviewing each and every agreement and seeking legal advice for further action, sources said.


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