Telangana Govt yet to take a call on entering into PPA with NTPC for remaining 1,600 MW power from Ramagundam plant  

Telangana Government undecided on signing PPA for remaining 1,600 MW power from NTPC's Ramagundam project.

The Telangana Government appears to be undecided over signing power purchase agreement (PPA) for the remaining 1,600 MW of the 4,000 MW project at Ramagundam being developed by the NTPC Limited.

The State Government has entered into PPA with NTPC for supply of 800 MW each from the two units that were commissioned. The Government gave its consent for availing 800 MW from unit I (800 MW) of phase-II involving construction of three units of 800 MW each, provided that NTPC connects that unit to TGTransco network to avoid Inter State Transmission System (ISTS) charges and losses.

But the Government is reportedly closely examining the proposal for entering into PPAs for the remaining units. The issue figured during the meeting convened by the Union Home Ministry recently to review the status of implementation of the provisions under the Andhra Pradesh Reorganisation Act 2014.

Representatives of the NTPC said the power utility is prepared to supply the entire power generated from the plant to Telangana if the government entered into PPA in this direction. Ministry of Power officials too are learnt to have insisted that the State Government take a stand on signing PPA for the remaining 1,600 MW. The government, however, has not taken any decision in this direction factoring in the committed PPAs it had entered already into and the costs involved in the purchasing power from the NTPC in the coming years.

The development comes in the backdrop of Chief Minister A. Revanth Reddy’s statement that the government was closely examining the proposals sent by the NTPC for entering into PPA for supply of 85% power from the proposed facility. The public sector firm is currently supplying power at ₹5.3 a unit and the cost could rise significantly after commissioning of the remaining units, which was likely to take close to five years. Signing an agreement at this juncture would make it mandatory for the State to buy power from the project in spite of the high costs, the Chief Minister said.