AP move to cancel PPAs angers Telangana state government

Andhra Pradesh government's move to cancel power purchase agreements (PPAs) with power distribution companies evoked an angry reaction from the Telangana government, which threatened to hit back.
"Hyderabad is a common capital. Your secretariat and assembly have to function from here. Don't you need electricity for your homes," Telangana Irrigation Minister T Harish Rao told reporters here.
He was responding to reports that the (new) Andhra Pradesh government has asked the Andhra Pradesh Electricity Regulatory Commission (ERC) to cancel the PPAs signed by the erstwhile "united" state with power distribution companies.
The AP government intends to ensure that electricity generated by the state is used within the state and it has contended that it does not get access to the power, though it produces more.

However, the move is likely to compound the reported electricity shortage in Telangana.
Terming the move "unilateral", Harish Rao, nephew of Telangana Chief Minister K Chandrasekhar Rao, demanded that it should be withdrawn immediately.
The AP government's move is likely to further strain the relations between the two successor states since the Telangana government is sour about the transfer of certain villages in Khammam district to the former, to facilitate construction of the Polavaram multi-purpose irrigation project.
The transfer of villages facing submergence due to the project, was envisaged as a way to address issues related to relief and rehabilitation by the Seemandhra government.