Telangana incurs 100 Cr loss after AP refusal!

The Power sharing between Andhra Pradesh and Telangana seem to be still in confusion. Recently AP discoms had submitted a report to ERC that all the power that is produced in the state will belong to itself and it will not be sharing the power from upcoming Hinduja and Krishnapatnam plants. On the other side, Telangana discoms have notified 53.89% power from the two plants in its reports.

While this tussle remained, Telangana is also making alternate arrangements in case AP refuses power. In case the power do not come, the power of the same amount has to be procured from outside sources and it will cost the state extra 100 Crore. However Telangana almost do not have options to buy power from other sources since there are no transmission lines from North to Telangana.

The Andhra Pradesh Reorganization Act has a mention of power sharing between both the states on the basis of the power usage in the last decade. Accordingly, 53.89% of Power is allotted to Telangana while the rest 46.11% is allocated to New Andhra Pradesh. However AP is not at all happy with the allocation and withdrew few unapproved PPAs and argue that since there are no PPAs, there is no question of power sharing.