india

Updated: Jun 27, 2019 00:58 IST

Andhra Pradesh chief minister and YSR Congress party president Y S Jagan Mohan Reddy on Wednesday ordered probe into the alleged corrupt deals with various companies, including power producers signed by the previous Telugu Desam Party government of N Chandrababu Naidu.

The chief minister announced that a cabinet sub-committee would be constituted to probe into the alleged irregularities in various deals.

“We have identified as many as 30 agreements signed with various companies by the previous government involving massive corruption,” Jagan said at an official review meeting held at his camp office at Tadepalli in Amaravati, according to an official statement.

The government would involve Anti-Corruption Bureau, Crime Investigation Department (CID) and Vigilance and Enforcement Department in the investigation, Reddy said.

Reddy’s latest diktat comes two days after he ordered a demolition drive against illegal buildings that resulted in the Praja Vedika conference centre built during the TDP’s government on the banks of the Krishna river being demolished on Wednesday.

He said there was massive corruption in signing of power purchase agreements by the Naidu government, especially with solar and wind power producers. “The previous government had purchased solar and wind power at exorbitant rates from select companies compared to the cheaper rates quoted by others in competitive bidding,” he pointed out.

During the review, it was revealed that the Naidu government had made excess payments to the tune of Rs 2,636 crore to these producers of solar and wind power, causing huge loss to the state exchequer.

Reddy also ordered that the energy department recover excess payments made to the power companies. He also directed that legal action be initiated against the higher officials of the energy department responsible for the deals, the minister and the former chief minister as well.

The chief minister also constituted a separate official committee to re-negotiate with the solar and wind power producing companies. “If they do not fall in line, we shall terminate the power purchase agreements signed with them and call for fresh bids,” he said.

In fact, in his first speech after taking oath as the chief minister on May 30, Reddy spoke about cancellation of agreements with the solar and wind power producers which had been allowed to charge high tariff from the previous government.

On June 6, Central renewable energy secretary Anand Kumar wrote to Andhra Pradesh chief secretary L.V. Subrahmanyam, suggesting that it was not proper to review power purchase agreements signed with solar and wind power producers as such a step would results in investors losing confidence in the state. But Reddy chose to ignore the suggestion.