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Bid to procure coal and gas may prove costly

Sharing power generated will create financial complications
Hyderabad:The steps by the two states to procure coal and gas to tackle the power crisis might prove costly. Sharing power generated will create financial complications with the state producing the power bearing a lesser part of the costs of its decisions.
“The state may be unwilling to take a cost effective decision. Currently both states are competing with each other in procuring energy and fuel from all sources. Reeling under a power crunch both states have bid for transmission corridors in advance. This is being done without any consideration of costs as short-term deals cost Rs 7 to Rs 12,” said a source.
Another issue is that apart from power from hydro plants, water is also being shared by both the states.
( Source : dc correspondent )
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