Why in the news? 

On June 27, the Telangana High Court postponed the hearing on a petition filed by Bharat Rashtra Samiti (BRS) president and former Telangana Chief Minister K Chandrashekar Rao. The petition sought to halt all future proceedings of the Justice (retired) L Narasimha Reddy Commission until Friday.

What is the Narasimha Reddy Commission?

• Formation: Appointed by the Congress government of Chief Minister A Revanth Reddy in March 2024.
• Purpose: To investigate Power Purchase Agreements (PPAs) made with Chhattisgarh in 2014-15 and construction of power projects at Yadadri and Bhadradri. Allegations of irregularities in the Kaleshwaram irrigation project.

What is Power Purchase Agreements (PPAs)? 

• Power Purchase Agreements (PPAs) are long-term contracts between electricity producers (such as power plants) and purchasers (such as utilities, governments, or large industrial consumers).
• These agreements stipulate the terms under which electricity is to be generated, delivered, and sold over a specified period.

What has the Commission done on the PPAs so far?

• Notice Issued: On June 11, the Commission issued a notice to K Chandrashekar Rao (KCR) requesting a response by June 15 regarding the PPAs made during his tenure (2014-2023).
• KCR’s Response: KCR accused the Commission of bias and political motivation, requesting Justice Reddy to recuse himself.
• Legal Action: Anticipating a personal summons, KCR filed a petition in the Telangana High Court seeking a stay on all proceedings of the Commission.
• Energy Minister Notice: G Jagdish Reddy, Energy Minister in KCR’s Cabinet, was also issued a notice to appear before the Commission to provide a statement regarding the PPAs.

Allegations Regarding the Power Plants

• Irregularities in Construction: The Narasimha Reddy Commission is investigating allegations of irregularities in the construction of the Bhadradri Thermal Power Plant at Manuguru and the Yadadri Thermal Power Plant at Damaracherla.Both projects were executed by the Telangana State Power Generation Corporation (TG GENCO).
• Specific Concerns: The focus is on potential discrepancies and irregularities during the construction process, which may involve issues related to project execution, costs, and adherence to regulatory norms.

Way forward: 

• Fair and Transparent Investigation: The Narasimha Reddy Commission should ensure a fair and transparent investigation into the allegations concerning Power Purchase Agreements (PPAs) and the construction of power projects.
• Collaboration and Accountability: Stakeholders, including former government officials and current authorities involved in the projects under scrutiny, should cooperate fully with the Commission.

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