HYDERABAD: The state government has decided to go ahead with its plans to purchase 1,000 MW of power from Chhattisgarh despite vehement opposition by some officials and opposition parties. Those opposing the government’s proposal claim it would impose financial burden on the state.
Meanwhile, official sources ruled out the possibility of cancellation of the Memorandum of Understanding (MoU) signed with Chhattisgarh for purchasing 1,000 MW power. “We can’t go back on the agreement. The market rates and the state’s power situation are two different issues.
We can’t link the both and see the issue in one perspective. As the state government already signed an MoU with its Chhattisgarh counterpart, we can’t cancel the agreement, because of reduction of power tariff in the market now,” an official belonging to the energy department told Express.
If the State government cancels the MoU, it would send wrong signals to the market and no one would come forward to enter into any agreement with the state in future, the official said.
“We purchase a mobile for some price. If the prices of the mobile comes down, can we sell the same and buy the same mobile for lesser price?,” another senior official remarked.
Sources in the energy department also pointed out that the state had made agreements for purchase of solar power for `6.5 per unit. Now, the rate of solar power got reduced to `4.5 per unit. “As the price is reduced now, we can’t cancel the past agreements. Same is the case with Chhattisgarh power,” the sources said.
However, sources added that the Chhattisgarh power issue is before the TS Electricity Regulatory Commission (TSERC) and it would decide on the price.
Not only opposition parties but also some of the senior officials in the government have been opposing the state’s proposal. Their argument is that the Chhattisgarh power would be around `4.90 per unit, whereas the State could get required power in short term bidding for lesser rates.
This apart, laying a corridor for bringing power from Chhattisgarh to Telangana is also a major problem. Despite the Power Grid Corporation Ltd (PGCIL) officials’s assurance given to Chief Minister K Chandrasekhar Rao recently that the grid connecting Chhattisgarh and Telangana would be ready in the next three months, higher-ups in the government are not sure about this.
If the laying of power lines are delayed, the TS government has to pay fixed costs towards Chhattisgarh Discoms without getting power, the officials said.
“We will wait till April, whether the power lines will be ready or not. We will think on it only after April,” an official in Energy department told Express.