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Govt to scrap PPAs with Singareni
Govt to scrap PPAs with Singareni. The Telangana State government has taken a decision to scrap the Power Purchasing Agreements (PPAs) with the Singareni Collieries Company to purchase power from its thermal power plant which is under construction at Pegadapalli village under Jaipur mandal in Adilabad district.
TIT-FOR-TAT STRATEGY
- TS move seen to deprive AP govt of power share from Pegadapalli thermal plant
- TS govt offended by AP state refusal to share power from Krishnapatnam plant
- Govt to enter into fresh agreements with SCCL
- PPAs with other thermal plants also to be scrapped
Hyderabad: The Telangana State government has taken a decision to scrap the Power Purchasing Agreements (PPAs) with the Singareni Collieries Company to purchase power from its thermal power plant which is under construction at Pegadapalli village under Jaipur mandal in Adilabad district.
The move is to ensure that the Andhra Pradesh government does not secure share in power to be generated from Pegadapalli thermal power station. The decision has followed the AP government refusing to share power from Krishnapatnam thermal power plant with the Telangana State.
Earlier the TS government took umbrage at the AP government’s decision to stop supplying power to Telangana while the union government-constituted committee was examining the issue of sharing of power between the two states. The committee held series of meetings with the officials of two states and was yet to give its verdict.
The Telangana State government informed Southern Regional Load Dispatch Centre (SRLDC) that in view of high price quoted by the Krishnapatnam Thermal Power Plant, the utilities were not ready to buy power from the project.
The officials of the Telangana TRANSCO told The Hans India that the government had communicated to the SCCL to annul all the previous PPAs and decided to enter into fresh agreements. The SCCL and all the DISCOMS in the united AP entered PPAs in 2011 facilitating the purchase of power by the utilities.
As per the PPA, the company would supply 1,050 MW of power to the utilities and the remaining 150 MW would utilised by the Company. After the division of the State, the AP Reorganisation act-2014 specified that TS was entitled to secure 53.89 per cent and the AP 46.11 per cent of power generated from the Singareni Collieries project which was under construction.
The Energy officials said that once the SCCL and Telangana State utilities entered into fresh agreements, the previous PPAs in the united AP would have no validity. “The TS government is also ready to counter AP if the latter approaches courts or Centre on the scrapping of PPAs with the SCCL,” a senior official of TS Transco said. The officials also pointed out that the cost of each unit being purchased from the SCCL-owned project was only Rs 4.50 as against Rs 5.50 from Krishnapatnam.
The government is also contemplating to withdraw all PPAs entered into with the yet-to-be commissioned Bhupalpalli thermal plant with 600 MW installed capacity and Kothagudem Thermal Power Station (KTPS) seventh stage taken up to generate 800 MW and enter into fresh agreements to ensure that the entire power to be generated is utilised only in Telangana State.
By Patan Afzal Babu
