HYDERABAD: The National Thermal Power Corporation (NTPC) Limited made it clear that if the state government fails to sign a power purchase agreement (PPA) for Phase-II of NTPC-Ramagundam (3X800MW), it will be compelled to offer the power generated to the other states in the southern region.
In a letter to the state government on January 29, 2024, the NTPC said that to ensure the timely availability of capacity and meet the growing power demand of the country, the Phase-II project needs to be awarded on priority after financial closure.
“Accordingly, the PPA is to be signed as a priority. We are yet to hear from Telangana Discoms regarding their willingness to procure power from NTPC Phase-II. It is therefore requested that your consent to take power be communicated immediately. If we do not receive any response from Telangana to take power from NTPC Phase-II by February 10, 2024, it will be presumed that Telangana Discoms are not interested. In such a case, the power will be offered to other states in the southern region,” the letter said.
NTPC-Ramagundam was assured in the AP Reorganisation Act-2014. Phase-I of the project was recently dedicated to the nation by Prime Minister Narendra Modi. However, the state government is yet to sign the PPA for the Phase-II of the project. The NTPC requested the state government to give its consent for the same at the earliest.
‘Yet to hear from TS Discoms’
In its letter to the state government, the NTPC said: “The PPA is to be signed as a priority. We are yet to hear from Telangana Discoms regarding their willingness to procure power from NTPC Phase-II”
Details disclosed in response to an RTI query
“Telangana phase-2 (3x800 MW) has been planned now. Accordingly, we have approached Telangana for consent to take the power from Telangana phase-II of the project. As you are aware, the country is facing a huge surge in power demand. To ensure the timely availability of capacity to meet the country’s ever-increasing power demand, NTPC is expanding its thermal capacity. In order to achieve financial closure and make an investment decision, the tie-up of 100% power off take, including the signing of power purchase agreements with intended beneficiaries/Discoms, is a prerequisite,” the NTPC said.
These details were disclosed in response to a query raised by RTI activist Inaganti Ravi Kumar. “Kindly provide your consent at the earliest for availing power from Telangana Phase-II (3x800MW) indicating the quantum of power for facilitating early execution of the project,” the NTPC said in a letter to the joint managing director, Telangana State Power Coordination Committee.
The NTPC is still awaiting a response from the state government and has not signed any PPAs with other states for Phase II of NTPC-Ramagundam. At present, the technical study is in progress for Phase II. The state government will receive 85% of the power from NTPC-Ramagundam. Ravi Kumar mentioned that the NTPC wrote three letters to the state government on Phase II from October 2023 to January 2024.