TS Signs Pact with Chhattisgarh to Buy 1,000 MW Power

A Power Purchase Agreement (PPA) was signed between the power distribution companies of Telangana and Chhattisgarh on Tuesday for purchasing 1,000 MW power. This is the best bet by the Telangana government, as the state is to get power at a very reasonable price of Rs 4.90 per unit from Chhattisgarh.

This includes wheeling and transmission costs. The actual cost of the power per unit would be around Rs 4 and the wheeling and transmission charges will be around 90 paise to Re 1.

The 1,000 MW power will start flowing into the state from September next year. Meanwhile, the Chhattisgarh Electricity Regulatory Commission (ERC) has to approve the tariff.

“The Chhattisgarh ERC is expected to approve the tariff in next February. The power will flow into the state, in all probability, from September,” official sources told Express.

At a time the government is planning to make the state powercut-free, the timing of signing of PPA was an added advantage to the state both in terms of availability of power and being economical.

According to official sources, the 1,000 MW power would be transmitted through any one of the two transmission lines which are under construction.

Work is in progress on transmission line from Angur in Odisha to Palasa in Srikakulam district in AP. Another line from Wardha in Maharashtra to Dichpally to Nizamabad to Maheswaram in Hyderabad is also in progress. These two lines would be completed by September next.

“We can use any one of the two lines,” the official said. The Power Grid Corporation of India Ltd (PGCIL) is laying these two lines which are 765 kv lines and transmit 4,350 MW each.

The PPA has been signed well in advance to get the permission for allotment of grid for transmission of 1,000 MW power to the state.

The PPA was signed in the presence of chief minister K Chandrashekar Rao on Tuesday at his camp office by Chhattisgarh distribution company MD Ankit Anand and Telangana State Central Power Distribution Company Ltd MD G Raghuma Reddy.

The energy secretaries of both the states signed an MoU for purchase of 1,000 MW in November 2014 in Chhattisgarh in the presence of Chandrashekar Rao and Chhattisgarh chief minister Raman Singh.

The PPA will be in force for 12 years. Energy minister G Jagadish Reddy, Secretary (Energy) Arvind Kumar, Chhattisgarh Genco MD SB Aggarwal were also present at the signing of PPA on Tuesday.

The state government is also willing to purchase another 1,000 MW from Chhattisgarh. However, power is not available readily with Chhattisgarh right now. “Construction of power plants are in the process in Chhattisgarh and we will take a decision on purchasing another 1,000 MW from Chhattisgarh after six months,” an official said.

Source: The New Indian Express

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