Telangana money filling coffers of AP Power Project!

Telangana government recently entered a long term PPA with Thermal Powertech Corporation India Limited (TPCIL) buying 570MW Power for a period of eight years. Telangana government agreed to pay 4.15 Rupees per unit for the Power Plant in Krishnapatnam of Andhra Pradesh’s Nellore district. However this agreement comes under scanner now.

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TPCIL entered similar agreement with AP government for unit price 3.58 Rupees. In addition, AP is paying a fixed charge of 1.82 Rupees for every unit, Telangana government agreed to pay 2.68 Rupees. This means the power supplied to Telangana is much more costlier than what is paid in AP. Due to this, Telangana had to shell about 2784 Crore extra for period of 8 years.

Center for Power Studies have lodged a complaint over this to Telangana ERC and demanded a public inquiry in to this deal. On the other side, Telangana government says this power purchases are needed to meet the power demand in the state in the next few years in the wake of power deficit in the state.