Punjab govt to renegotiate power purchase agreements with private players

Amid mounting criticism over electricity charges, Punjab Chief Minister Amarinder Singh on Monday said his government will renegotiate power purchase agreements with private players.

While warning the private firms against "messing with state finances", the CM blamed the previous SAD-BJP government for the agreements, saying these were signed by them to "defraud" the state and its people.

"Chief Minister Amarinder Singh on Monday said his government would renegotiate the power purchase agreements (PPAs) which the erstwhile Akali government had signed to defraud the state and its people," a government statement said here.

Given the shortfall in production by state-owned power plants in Lehra Mohabbat and Ropar, the CM said his government would work on the existing arrangements with the private players to make power affordable while ensuring that the peak demand of 13,000 MW was effectively met.

The Aam Aadmi Party (AAP) had planned to raise this issue in the budget session starting February 20.

The Shiromani Akali Dal (SAD) too had sought an independent probe into the matter, alleging that the state government extended "undue benefits" of Rs 2,500 crore to private power plants.