Telangana, AP Govts Headed for Power Punch Over PPAs

Both Telangana and Andhra Pradesh State governments are in confrontation mode on contentious issues.

Published: 19th June 2014 07:38 AM  |   Last Updated: 19th June 2014 07:38 AM   |  A+A-

HYDERABAD: Both Telangana and Andhra Pradesh State governments are in confrontation mode on contentious issues.

Even as the controversy is going on with regard to the fee reimbursement, the latest issue pertains to the request by Andhra Pradesh government to the Electricity Regulatory Commission (ERC) to cancel the power purchase agreements (PPAs), which are under the final stage of processing.

The PPAs are proposed between united APGenco and four Discoms for thermal and hydel power projects. The ERC conducted a public hearing recently on the PPAs, but did not deliver final order till date.

If the PPAs are cancelled and the power is allotted based on the location of power plants, the successor AP government will be in a better position in power supply. The ERC is examining the request made by the AP government.

Expectedly, the Telangana government is strongly opposed to the AP State’s move and minister T Harish Rao warned Andhra government against the proposal.

Even TPCC chief Ponnala Lakshmaiah said Naidu’s move to cancel the PPA would create problem between the two states and urged the chief minister to reconsider his decision.

After the bifurcation of AP, the available power was distributed between successor States based on utilisation in the last five years. If power is allocated between the two states based on the power plants (as is where is basis), then Telangana state will get less power.

The AP government headed by N Chandrababu Naidu discussed the power subject at length in the first Cabinet meeting held in Visakhapatnam recently. On Tuesday, the APGenco wrote a letter to ERC of Telangana and AP to cancel the PPAs proposed by the united APGenco for new power plants. The AP government wanted the ERC to allocate power based on the plants and adopt “as is where is” policy.

Of the total installed capacity of thermal power in the united AP, plants having 2,810 mw installed capacity are located in AP and plants with an installed capacity of 2,282 mw are located in Telangana. AP has 518 mw more power.

But, distribution of power based on utilisation, irrespective of location of plants is a loss to AP, felt Naidu government. Of the total 3,829 mw installed capacity of hydel power in the united AP, Telangana has 200 mw more power. However, hydel power is undependable.

If the ERC decided to cancel the PPAs as requested by the AP government, the total loss to Telangana will be around 460 mw.


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