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CID probe against IPPs

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Our Regional Bureau Hyderabad
The Andhra Pradesh government today confirmed that it has ordered for a CID inquiry into the irregularities allegedly committed by the three existing gas-based power projects "� Spectrum, GVK and Lanco Power.
 
Mohammed Ali Shabbir, minister for energy and information & public relations, said that the inquiry had been ordered on four counts including enhancement of capital cost to draw higher fixed costs and raising the plant capacity.
 
"As and when we receive the inquiry reports, we will take further course of action against those who violated the law," he said.
 
The measure is viewed as a step to arm-twist the three independent power producers (IPPs) to fall in line with the government's call to reduce the bulk supply cost. The state government feels that these companies are collecting exorbitant tariff by inflating the capital cost from APTransco when compared to the fixed cost proposed by the upcoming gas power projects.
 
Discussions between the company managements and the state government on what is popularly known as the renegotiation of power purchase agreements (PPAs) till recently yielded no results.
 
While the CID probe was already ordered against the promoters of Spectrum Power during the last days of Naidu government, the present government has included the other two projects.

 
 

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First Published: Aug 05 2005 | 12:00 AM IST

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