Telangana CM Statement a Lie; States Free to Buy RE From Any Developer based on Bids: Union Power Minister

Union minister R K Singh on Tuesday dismissed a speech by Telangana Chief Minister and clarified that states are free to hold their own bids and buy renewable energy from any developer based on those bids.

He was referring to a speech by Telangana Chief Minister K Chandrashekar Rao on February 11 at Jangaon district headquarters where the latter stated that the central government forces states to buy renewable energy from particular developers.

“This is a lie,” a Ministry of New and Renewable Energy statement quoted Singh as saying.

States are free to hold their own bids and buy renewable energy(RE) from any developer based on those bids, the statement said.

Solar Energy Corporation of India (SECI) also conducts open bids for RE from time to time, it added.

These bids are highly competitive, with numerous companies competing and the firms which offer the least tariff are selected transparently through the open bid.

Thereafter, states which desire to buy power from those bids do so, as per their requirement, it said.

Whether they wish to purchase power at the rates finalized in the bids or not is entirely states’ own decision, the statement stated.

“They can choose to have their own bids. Therefore, the statement by the chief minister was totally false,” Singh said.

As far as Renewable Energy Purchase Obligation (RPO) is concerned, this is a part of an international commitment made by all major economies to carry out energy transition from fossil fuels to non-fossil fuel sources, it stated.

While developed countries have pledged to achieve net zero emission target by 2050, India has pledged to achieve it by 2070. The transition to non-fossil fuels — renewable energy — is part of that commitment.

“The Chief Minister has also talked about hydro power. Hydro power capacity he is talking about, have been and is being constructed because of loans given by PFC and REC; both of which are Government of India companies. PFC and REC have together lent Rs 55,000 crore for Kaleshwaram; Palamuru and other projects. He should be thankful to Government of India for these projects,” the statement said.

The ministry also rejected the chief minister’s statement stating that the Centre is pressuring states to meter electric connections to farmers.

“This statement is totally false – a lie. Such false and baseless statements do not behove a person who is occupying the august Office of the Chief Minister,” it said.