Kishan Reddy wants Telangana govt to expedite PPA with NTPC

Union Minister urges Telangana to finalize Power Purchase Agreement for NTPC project to meet the State's growing power needs.

Union Minister for Coal and Mines G. Kishan Reddy has urged the Telangana government to respond to the NTPC and firm up the Power Purchase Agreement (PPA) for the State to make use of the power to be generated from the proposed next phase of plans at the Ramagundam unit.

Completion of the next phase of the NTPC power plant of 2,400 MW is vital for providing round-the-clock power supply for domestic, industrial and agricultural purposes, with Telangana having the first right to make use of the power being generated, he said, on Sunday.

The Minister, in a media release, had questioned the government’s seriousness regarding the project considering the inordinate delay in completing the PPA with the Central power agency despite several reminders. Mr. Kishan Reddy contended that though the Centre has been striving to ensure adequate power production for Telangana, necessary support is not forthcoming from the State government here.

The NDA government led by Prime Minister Narendra Modi had laid the foundation stone for the ₹10,598.98 crore project a few years ago. The first phase of 800 MW and second phase of 800 MW were dedicated to the nation on October 3, 2023 and March 4, 2024, respectively by the Prime Minister. About 85% of the 1,600-MW power being generated is being utilised by Telangana, he explained.

The Centre is keen to complete the remaining 2,400 MW works and ensure power production begins at the earliest. The Transmission Corporation of Telangana Limited (TGTransco) should sign a PPA with the NTPC for the same. It would enable the Central power agency to plan for the construction and coal supply linkage.

The Minister claimed that four letters have been written to the Telangana government, including three this year itself, but there has been no response from the TGTransco. The NTPC, in the latest communication, has said that it could indicate the State agency is not keen on the PPA.

The peak power demand for Telangana is set to increase exponentially by 2030, from the 15.6 GW demand of March 2024. “Therefore, the plant power production could become vital for the State’s needs and it could be a great loss if the power is sought by other States,” he added.