Aperc urged to scrap alternate fuel clause

CPI(M) state committee secretary B V Raghavulu and Telugu Desam leader M V Mysoora Reddy argued against the alternate fuel clause provided in the power purchase agreements (PPAs) signed by the APTransco for the four new private gas-based power projects in the state here on Monday.

Giving his opinion before the Andhra Pradesh Electricity Regulatory Commission (Aperc), Mysoora Reddy said that the previous Telugu Desam government had provided the alternate fuel clause in the PPAs only to ensure the financial tie-ups required for the projects. He appealed to the commission to review the clause.

Raghavulu urged the commission to scrap the alternate fuel clause as it has serious financial implications on the state.

When the government signed PPAs for gas-based power projects in place of the earlier PPAs which envisaged naphtha as fuel, costly fuel that burdens the government and the consumers should not be used, he said.

The commission commenced the public hearing on the issue of alternate fuel clause following a revision petition filed by APTransco last year.

Since then, Aperc conducted several rounds of hearings to receive the opinions of interested parties including the independent power producers (IPPs) of the four projects "� Gouthami Power (464 mw), Konaseema EPS Oakwell (445 mw), Vemagiri (370 mw) and GVK Industries (230 mw).