No anomaly in PPA with Chattisgarh

“We appeal to all the forums not to politicise this issue and create unnecessary disturbance to the power planning of Telangana state at this crucial hour,” they said. A delegation of the association submitted a memorandum to the Telangana State Electricity Regulatory Commission chairman urging him to expedite the approval for the agreement. The MoU with the Chhattisgarh State Genco to purchase power from its upcoming power plant at Marwa was transparent and beyond any doubt. The tariff will be decided by the Chhattisgarh ERC and it is would be as per Union power ministry guidelines,” they said.

Referring to allegations against the agreement, they said paying fixed charges for contracted capacity without utilising the power due to non-availability of transmission corridor is a hypothetical and baseless issue. They said the TS discoms had opted for long-term power purchase agreements because of the competition among the southern states. The government had opted for the MoU route rather than competitive bidding only after carrying out brainstorming sessions with stakeholders. “As there are constraints of corridor from the NEW Grid to the South Grid, there is no guarantee of TS Discoms getting inexpensive power via competitive bidding due to huge competition. The ERC is the competent authority to approve either negotiated tariff or to adopt competitive bidding as per provisions,” it said.