Telangana Losing 1000 Crore per Year Due to Andhra Power

The Power Problems that arose between both the Telugu States after the bifurcation are refusing to die down. Telangana is now on losing side as the state is purchasing thermal power from AP at a higher cost while selling the thermal power produced in the state at a lower price.

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AP’s share in thermal power plants located in Telangana is 44% and Telangana share in thermal power stations located in AP is 54%. The 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 is cheaper.

This is resulting in a burden of 1000 Crore per year on Telangana. Now, Telangana wants the power plants be shared on location basis so that it can utilize entire power generated in the thermal plants located in Telangana. But then, Telangana can not unilaterally cancel the PPAs without Center’s Intervention.