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Telangana to Buy 500 MW Power from Chattisgarh

The Telangana government hastened its power purchase plans. As per the revised plans,

Published: 01st August 2014 08:39 AM  |   Last Updated: 01st August 2014 08:45 AM   |  A+A-

HYDERABAD: The Telangana government hastened its power purchase plans. As per the revised plans, around 500 MW power will flow from Chhattisgarh to Telangana by December this year. Power will be supplied to Telangana from Janjgir power plant in Chhattisgarh.

After the talks between Principal Secretary (Energy) Sailendra Kumar Joshi and his Chhattisgarh counterpart Aman Kumar Singh, both the states have decided to sign a power purchase agreement within two weeks for purchase of 1,000 MW. 

Instead of laying dedicated lines, Telangana has decided to use the existing Southern Power Grid corridor so that delay in purchasing the power and also cost of around ` 4,000 crore for laying new transmission lines would be avoided. As per the talks, the Chhattisgarh government has agreed to sell power as per the tariff fixed by the Telangana State Electricity Regulatory Commission (TSERC). “Chhattisgarh has agreed to supply power as per the rate decided by TSREC,” sources in energy department told Express. The Telangana Genco and Chhattisgarh Power Trading Corporation will sign a power purchase agreement (PPA).

Telangana officials are currently preparing the draft PPA.  Meanwhile, the Telangana government on Thursday issued orders constituting a search committee for finding suitable candidates for chairman and members for the newly-created TERC. It will be in place in three to four months and will decide the tariff for power to be purchased from Chhattisgarh. Once the ERC finalises the tariff, power will flow from Chhattisgarh to Telangana by the end of December 2014.

 Even if the constitution of TERC is delayed, Chhattisgarh would supply power and the amount would be paid after TERC fixes the tariff, sources said.

 Telangana has decided to enter into a long-term PPA for 12 years. Official sources said once pressure on the corridor from Tamil Nadu and Kerala eases out, Telangana would get some space. Chhattisgarh will supply power to Southern Grid and Telangana will draw from the grid. “Laying of dedicated lines will take time and expensive. That’s why who chose this option,” an official told Express.

SEARCH COMMITTEE FOR TERC

The Telangana government on Thursday constituted a selection committee for appointment of Chairman and two members of  Telangana Electricity Regulatory Commission. Committee chairman will be Justice P Swaroopa Reddy, retired Judge of High Court. Chief Secretary Rajiv Sharma will be a member, energy secretary will be the convener for the selection Committee.

NO POWER CUTS

As the major reservoirs like Srisailam and Nagarjuna Sagar are getting heavy inflows, energy officials estimated that hydro power generation will pick up. With this, the state could overcome the demand and supply gap of 400 MW daily now. Once Chhattisgarh supplied power, then there will be no major power shortage in Telangana.



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