HYDERABAD: Lauding the power utilities for providing uninterrupted electricity despite peak demand reaching an all-time high of about 20,000 MW, Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka on Wednesday rejected outright the reports of disinvestment in power sector.
Addressing the media here, Vikramarka reiterated that there was no truth in the reports suggesting that Transco, Genco and Discoms would be privatised or converted into listed companies.
“The Congress government is committed to strengthening public sector undertakings. There is absolutely no thought or discussion of selling the power sector. We strongly believe in strengthening public sector undertakings,” he said.
The deputy chief minister also said that the peak power demand in the state touched 19,892 MW. “Yet, our government is supplying uninterrupted power without imposing any power cuts,” he said.
Hitting back at BRS leader T Harish Rao for criticising the state’s power sector and the Yadadri Thermal Power Plant, he said that those who were in power for 10 years should explain what they had done instead of hiding their mistakes and making irresponsible statements merely because they are now in the opposition.
Vikramarka alleged that the previous government proceeded with the construction of the Yadadri power plant without finalising the required coal allocation and supply linkages in advance.
He said that under an agreement signed between the Singareni Collieries Company Limited and TS Genco on April 20, 2016, out of the 14 million tonnes of coal required annually for the Yadadri plant, Singareni was to supply only seven million tonnes.
On December 9 of the same year, another agreement was entered into with MSTC under which the remaining 50 per cent of the coal requirement was proposed to be imported. MSTC had agreed to supply around seven million tonnes of imported coal annually for the Yadadri plant, he said.
‘How can thermal plant be run without requisite coal’
The deputy chief minister further said that letters were also written to the Railways for transportation of the imported coal. However, those agreements were not implemented.
On April 27, 2022, another Memorandum of Understanding was entered into under which Singareni would supply the entire 14 million tonnes of coal required by the Yadadri plant. But, by 2022-23, Singareni’s production capacity of G-9 grade coal was only 1.71 million tonnes, he said and asked how Singareni could supply 14 million tonnes of coal annually to Yadadri under such circumstances.
Alleging that the previous government failed to assess future coal requirements in advance and make alternative arrangements, he demanded that Harish Rao explain how the thermal plant would be operated without the supply of required coal.
He also explained the financial burden being imposed on consumers by the Yadadri Power Plant. He said the cost of electricity generated from Yadadri is Rs 6.66 per unit. In comparison, electricity from the Kakatiya Thermal Power Plant costs Rs 4.17 per unit, while electricity from the Bhadradri Thermal Power Plant costs approximately Rs 4.60 to Rs 5.10 per unit, he said.
“When the cost of Yadadri power is so high, who will bear the burden? The consumers, obviously. The burden will ultimately fall on the people of Telangana. They are responsible for this,” he said.
Vikramarka pointed out that since the plant has an estimated lifespan of around 25 years, the state could face an additional financial burden over the long term. He also said that documentary evidence would be presented in response to those spreading false propaganda about the Yadadri Power Plant. “We will place evidence relating to the decisions of the previous government before the people. Once every week, we will place the facts before the public along with documentary evidence,” he added.