Telangana buys ‘costliest’ thermal power from Andhra Pradesh

DECCAN CHRONICLE. | SNCN ACHARYULU
Published Mar 24, 2017, 2:04 am IST
Updated Mar 24, 2017, 7:00 am IST
In Andhra Pradesh the highest cost per unit is Rs 20.57 and the lowest is Rs 5.57, while it is Rs 4.69 to Rs 3.60 in Telangana.
Telangana is purchasing thermal power from Andhra Pradesh at a higher cost while selling thermal power produced in state at a lower price. (Representation image)
 Telangana is purchasing thermal power from Andhra Pradesh at a higher cost while selling thermal power produced in state at a lower price. (Representation image)

Hyderabad: The TSTransco is losing crores due to delay in submission of a report by the high-level panel constituted by the Central government to go into the power sharing dispute between AP and TS.  

Following a tentative agreement between the two states, TS is purchasing thermal power from AP at a higher cost while selling the thermal power produced in the state at a lower price.

 

AP’s share in thermal power plants located in TS is 44 per cent and TS share in thermal power stations located in AP is 54 per cent. Accordingly, the TS share of power produced by thermal power plants located in AP is about 2,210 MW while AP’s share of power produced in thermal power plants located in TS is about 795 MW.

Cost of power generation is higher for thermal power plants located in AP because of higher coal transportation costs, while thermal power plants in TS are located closer to the source of coal, thus bringing down cost of power generation.
In AP the highest cost per unit is Rs 20.57 and the lowest is Rs 5.57, while it is Rs 4.69 to Rs 3.60 in TS.

This essentially means TS is selling power at the lowest possible price to AP and buying it at the possible price. Officials calculate that the financial burden on TSTransco is about Rs 1,000 crore per year.

At the time of bifurcation, TS had opted to share power as per the agreement reached in the undivided state. Now, TS wants the power plants be shared on location basis so that it can utilise entire power generated in the thermal plants located in Telangana, and AP do utilise the power generated by plants  located in Andhra region.

However, officials point out that the state cannot cancel the agreement at present and hence it is waiting for the high level panel committee report. Once the committee report is submitted, then both the states can take a decision accordingly.

Meanwhile TS electricity employees JAC has demanded the state government cancel the power purchase agreement with AP.

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Location: India, Telangana




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