Vijayawada: In an apparent indication that there is more trouble in store for former chief minister N. Chandrababu Naidu, the Y.S. Jagan Mohan Reddy government decided on Wednesday to constitute a Cabinet sub-committee to probe into alleged irregularities of the previous administration.
The government felt that there were many irregularities in power purchase agreements (PPAs) made by the previous government which led to a loss of Rs 2,636 crore to the exchequer. The government will initiate recovery measures besides initiating legal proceedings against the offenders.
During a review meeting on the power sector here on Wednesday, Chief Minister Y.S. Jagan Mohan Reddy said the sub-committee would be helped by the ACB, CID, Vigilance and Enforcement and others in probing over 30 issues including irregularities in power purchase agreements and sand mining
Officials were told that action would be taken against all officials and persons responsible for the irregularities, and the legal option would be explored in this respect.
There were irregularities and corruption during the past five years in PPAs and in giving permission for setting up power plants, he said.
As on May 2019, dues of power plants to be paid to discoms mounted to Rs 18,375 crore while the amount that the previous government has to pay discoms reached Rs 10,400 crore. With such a debt, the power sector is bound for a major shock, Mr Reddy said in the review meeting with officials.
“The debt raised by the state government spiralled from Rs 96,000 crore to Rs 2,58 lakh crore during the past five years,” Mr Reddy said.
