Telangana, AP germinate another power distribution issue?

Hyderabad: Even before the resolution of the PPAs issue between the two states – Andhra Pradesh and Telangana, one more issue has started germinating. An issue concerning the 1040MW Power Plant of Hinduja National Power Corporation Project in Visakhapatnam has been pending for more than 2 decades.

In the first phase of generation of 520MW power in the coming 2-3 months, already Hinduja agreed to sell it fully to Andhra Pradesh on ERC (Electricity Regulatory Commission) Prices. To this effect, an MOU was signed in 2013 between the government of erstwhile Andhra Pradesh and Hinduja. But a Power Purchase Agreement (PPA) is yet to be made.

As per the Andhra Pradesh reorganization Bill, Telangana state should technically get a share of 53.89%. Even, it is learnt that the Telangana government has asked its discoms to make PPAs accordingly. Nevertheless, Andhra Pradesh is not going to honour this request at any cost, added sources. The key point of not getting the PPA signed before the state bifurcation could be used to the advantage of the Andhra Pradesh government. From the other end, the committee appointed by the Center to resolve power issues between the two states will have its first meeting in Delhi on 14th of this month may also take up this issue as well.