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KCR Power Purchase Issue: Shocking Revelations and Irregularities

KCR Power Purchase Issue: Shocking Revelations and Irregularities

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Telangana Former  Chief Minister K. Chandrashekar Rao is in the dock over alleged irregularities in power purchase agreements with Chhattisgarh. All of this row started with a letter that KCR wrote to the Power Commission, explaining these agreements and stating that they were made with all necessary permissions for the benefit of the public of Telangana. But how far is the enquiry by the commission valid?.

Massive Financial Losses: Reports by officials of the power sector have stated that the power purchase agreements involved massive losses worth ₹85,000 crores for the state’s Distribution Companies. As per Mr KCR, Telangana had purchased power at ₹3.90 per unit; the supply cost went up to ₹5.64 per unit, causing an additional load of ₹3,110 crores. These contracts were inked a few years ago, the actual supply started only in late 2017, and even then, the promised 1,000 megawatts did not materialize. The additional expenditure to buy power from the open market rose by ₹2,083 crores from 2017 through 2022.

Other issues with power plants:

Besides these pacts, there are the Jadadri and Badradri power plants, too. KCR had announced that it was incumbent that power should be generated and entered into a pact with the public sector undertaking BHEL to build a power plant of sub-critical standard. This is now projected to prove to be highly ecologically and financially harmful on the banks of the Godavari River.

Unilateral Decisions and People’s Burden:

These decisions that the BRS government had taken in its term have apparently pitched a heavy financial burden on Telangana people. The hasty and unilateral decisions made huge debts for the state. The Commission is speeding up its investigation, gathering information from all sectors and questioning officials.

Expected Outcomes: 

Preliminary findings indicate that thousands of crores in public funds were washed down the drain due to one-way decisions taken by government officials in the past. The final report of the Commission will look into these one-way decisions and fix responsibility, a task the result of which will soon dictate who is accountable for the fiscal blunders.

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