Power woes: Ray of hope for Telangana

Power woes: Ray of hope for Telangana
x
Highlights

Power woes will end in Telangana in the ensuing summer if all goes well. Telangana State would get 240 MW of power from gas-based power generation units in Andhra Pradesh as the Centre approved the proposal to provide natural gas to the companies from the KG basin.

Centre to provide natural gas from AP power plants; TS to get 240 MW

Hyderabad: Power woes will end in Telangana in the ensuing summer if all goes well. Telangana State would get 240 MW of power from gas-based power generation units in Andhra Pradesh as the Centre approved the proposal to provide natural gas to the companies from the KG basin.

The Union Ministry of Power informed the AP and Telangana governments that 2.4 MMSCMD (Million Metric Standard Cubic Meter per Day) of gas would be supplied to gas-based power plants in AP during the summer months. The gas being used by fertilizer manufacturing companies owned by the Union Ministry of Chemicals and Fertilizers would be diverted to power generation units.

The fertilizer units have been asked to use RLNG (Re-gasified Liquefied Natural Gas, also called as Naphtha) in the place of gas.Based on the letter sent by the TSTRANSCO Chairman and Managing Director D Prabhakar Rao who requested the Centre to address the scarcity of gas for the projects, Union government responded positively and assured that Telangana would get power from the units.

However, the Telangana government should pay Rs 7 per unit for the supply of power from private companies which will generate 450 MW of power from the allocated gas. As the Telangana power utilities already entered PPAs with the gas-based power plants in the united AP, Telangana would get 53.89 per cent of the generated total power from the plants, the official said.

Further, in a big relief to six private gas-based units having a total installed capacity of 2700 in the AP, the government allowed the companies to use Naphtha in place of natural gas as fuel to generate power, following the crash in the prices of the RLNG. The officials said that Naphtha prices had been reduced to Rs 42,000 per tonne from Rs 80,000 due to fall in crude oil prices at international market. Once all the gas-based units started generating power, Telangana is entitled to get 1000 MW of power from the units. However, it all depends on the cost of the power generation and the price offered to Telangana State by the companies.

Show Full Article
Print Article
Next Story
More Stories
ADVERTISEMENT
ADVERTISEMENTS