Karnataka: Government refutes opposition charges on power purchase agreement

The state government on Monday refuted allegations by Congress and AAP about aberrations in the power purchase agreement with central agencies.

KPCC working president Eshwar Khandre and AAP state convener Pruthvi Reddy have alleged that Karnataka incurred losses of around Rs 19,000 crore by purchasing power even after the 12-year agreement with central agencies had concluded.

“The statement has been made on false assumptions and intended to mislead the public,’’ said a release issued by the chief minister’s office. The government said some assumptions about the extent of unused energy, especially those relating to energy generated by KPCL, were unrealistic. It said Karnataka has a huge dependence on renewable energy, but this energy is variable, and still unreliable because not enough investments have gone into the transmission and grid architecture to make it stable. So, it said, the state is forced to continue dependence on external sources.

It said power from central generating stations (CGS) is cheap, and is a long term contract. Cancelling the contract will involve significant penalties.

ET Energy World
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