Andhra Pradesh Cabinet took a decision which benefited a private wind power company in spite of caution from state government chief secretary Dinesh Kumar, Oil and natural gas chief secretary and the financial department.
Media reported that oil and natural gas chief secretary commented that buying of wind power would be disastrous to the user and the Discoms. It is also revealed that the chief secretary wrote on the file that agreements of buying wind power would result in the fall of Discoms.
But the Cabinet decided to inflict Rs 1000 crores financial burden on the people of the state. Though the market price of power is inexpensive and cheap, Cabinet decided to purchase it at a heavy price. This is nothing but a huge power scam.
A wind power plant in Tamil Nadu is willing to sell per unit power at the cost of Rs 3.46, APERC (Andhra Pradesh Electricity Regulatory Commission) decided to buy power from Suzlon at the rate of Rs 4.84 per unit. This is an unnecessary added financial burden on the treasury and the Indian Energy Exchange (IEX) had already warned APERC and the AP government.