Powerful reform plans: Tribunal to enforce contracts, reform-linked-financing good

Given the Andhra Pradesh government’s refusal to back down on its plan to review the renewable energy PPAs signed by the Chandrababu Naidu government—the Jagan Reddy government said they were too costly—Union power minister RK Singh has done well to come up with a new plan to tackle this. He has told Mint that a new tribunal—to be headed by a retired judge—is to be set up to deal only with enforcement of contracts. Though the Cerc and appellate tribunal Aptel can also, theoretically, do this, Singh probably feels the existing bodies are unequal to the task. Of course, the proof of the pudding lies in the eating, so a final verdict cannot be given until the body gives its first set of directions. Given all tribunal verdicts are challengeable either in an appellate body or in the Supreme Court, it is possible a state government like Andhra Pradesh will try and delay matters by appealing the tribunal’s judgment.