Hyderabad, October 15: Andhra Pradesh Chief Minister K Rosaiah said the government’s decision to allow independent power producers (IPPs) of gas-based power projects to sell 20 per cent of the power generated to outside sources intends to save the state from a financial burden of Rs 1,020 crore per year.
The state government was forced to pay Rs 1,020 crore every year to the four IPPs as fixed charges even if they did not generate any power. This was the agreement signed with the IPPs by the then TDP government in 1997 and we had to implement it. But we talked to the IPPs and prevailed upon them to do away with the alternative fuel option and saved crores of rupees to the exchequer, he said.
–Agencies