Hyderabad: The Irrigation Department has written a strongly worded, plausible letter to the Telangana Electricity Regulatory Commission (TGERC) on high tariff being collected for power supply to major lift irrigation projects.

The Irrigation wing has requested the ERC to stop collecting Rs 300 demand charges per month per KVA and reduce the current tariff of Rs 6.30 per unit for power supply.

Presently, the total power load for lift irrigation schemes is 2,819.80 MW, and it would increase to 7,348.00 MW in 2026.

In its missive, the Irrigation wing pointed to the ERC the purpose of the pumping station and likened it to that of farmers’ agriculture pump sets. Hence, it reasoned, tariff to be applied for LIS (lift irrigation schemes) ought to be the same as that applied to farmers’ pump sets. “Power purchase charges will be less in the power market during monsoon, cheaper power will be available in the market during the monsoon. Hence power tariff to be applied to LIS is to be less”.

A power generating company using water from the reservoirs constructed by the Irrigation Department and the power generating company is paying royalty to the Irrigation wing for using water. Similarly, the department will pay the same amount, i.e. equal to the royalty being paid by TGGENCO.

For example, if the power generating company (TGGENCO) uses one TMC of water and generates power (say one MU) and pays royalty amount (say Rs.1000/-); then I&CAD will use one MU for lifting water in a pumping station and pay Rs 1,000/- to power generating company and TGTRANSCO shall adjust in dues owed to TGGENCO.

Further, the Irrigation wing officials pointed out, the cost of power lines, substations at pumping stations, and additional feeder works done at power grid substations to extend power supply to the pumping stations is totally paid by the department to TGTRANSCO.

In view of above, the tariff of Rs 6.30 per unit applied for Lift Irrigation Schemes is high and “not logical”.

The Irrigation wing officials suggested that it could be reduced to the level of cost of power generation in hydro generating stations or power purchase cost during the monsoon and just after the monsoon. i.e. winter. “It is requested not to apply demand charges Rs 300/KVA /month for government LIS schemes and reduce power tariff to that of cost of power generation in hydro generating stations or power purchase cost of TGTRANSCO or Discoms during monsoon & winter,” the letter stated.