TS Claims 'Due Share' of Power from Krishnapatnam Plant

Telangana government says it has invested `1,050 crore in Krishnapatnam power project

Published: 26th October 2014 06:01 AM  |   Last Updated: 26th October 2014 06:01 AM   |  A+A-

HYDERABAD: Telangana state, which is facing acute power shortage, is firm in getting its ‘due share’ in power generated by Krishnapatnam and Hinduja power plants. It has launched a virulent fight against AP, by quoting the AP reorganisation Act.

The Telangana government says that it has invested in the Krishnapatnam power plant, which started generation of infirm power recently. The Hinduja power plant too is expected to be commissioned in November.

According to information furnished by Telangana chief minister K Chandrasekhar Rao to the media, the Krishnapatnam power plant is a joint venture of Telangana and Andhra Pradesh states. The power purchase agreement (PPA) with Krishnapatnam power plant was signed in the combined AP government.

However, the Telangana government was arguing that the first unit of 800 MW in Krishnapatnam was synchronised in March, 2014 and since the delivering infirm power, in which the Telangana state should get 53.89 per cent i.e., 431 MW. But, the power was not scheduled to Telangana.

Further, it contended that TSGenco and Discoms had invested in Krishnapatnam. Telangana State Southern Power Distribution Company Ltd had invested Rs  352 crore, while  the Northern Power Distribution Company Ltd had invested Rs 143 crore.

In addition to this, Telangana State Genco share of 53.89 per cent out of Rs 1,030 crore made by combined APGenco will come to around Rs  555 crore. Thus, the total investments made by Telangana in Krishnapatnam will be Rs  1,050 crore.

As per the estimates of Telangana government, the state’s share in power is as follows: Krishnapatnam state-1(800 MW) - 431 MW, Krishnapatnam stage-2 (800 MW) - 431 MW and Hinduja National Power Corporation LTD (1,040 MW) - 560 MW. Thus, Telangana should get a total of 1,422 MW in these two plants.

The PPA was signed for Krishnapatnam in November 2010 and an MoU with Hinduja was entered by Discoms last year and the PPA was under finalisation.

WHAT DOES AP Reorganisation ACT SAY

The 12th Schedule of the AP Reorganisation Act says that the existing PPAs with respective Discoms shall continue for both on-going and projects under construction. It may be noted here that the Committee constituted by the ministry of power for resolving the power related issues between AP and TS states: “The government of AP is not scheduling power and injecting the same in the grid, this could jeopardise secure operation of the grid. Therefore it is essential that AP honours the PPAs and schedule power from APGenco thermal and hydro stations in accordance with the power allocated amongst Discoms.’’


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