Andhra Pradesh and Orissa, which are not seeing eye to eye over Polavaram project have arrived at an understanding, however, to construct a 60 MW capacity hydro-electric project jointly at a cost of Rs.300 crore across the Sileru river at Chitrakonda, some 20 km above Upper Sileru hydel power station.

The understanding provides for the two States to equally share the cost of the project and also the power generated from it. G. Adiseshu, Director (hydel), AP Genco, told The Hindu that the draft agreement would be prepared soon for approval by both the States before commencement of work.

Chitrakonda is a place deep in the forests where Maoists are said to be active.

Mr. Adiseshu participated in the daylong discussions held here on Thursday by AP Genco team comprising its MD K. Vijayanand and its JMD D. Prabhakar Rao with Orissa officials led by its Principal Secretary, Energy, P.K. Jana.

Mr. Adiseshu said Orissa had also agreed to renovate and modernise the 57-year-old 120 MW capacity Machkund hydel power station that lies 150 km above Chitrakonda, at a cost of Rs.300 crore. Except the penstocks, all other equipments, including rotor, generator and control panels would be replaced.

Equal sharing

As per the original agreement, 70 per cent of the power generated by the plant was going to AP at present and the remaining to Orissa.

But after modernisation, the two States would share power equally like the cost.

Sileru river, which joins Godavari in Andhra Pradesh, has three hydel projects at Lower Sileru (460 MW), Donkarai (25 MW) and Upper Sileru (240 MW), all located in deep forests.

With an overall capacity of 725 MW, Sileru complex keeps the State in good stead as and when generation is stopped at Srisailam (1,670 MW) and Nagarjunasagar (965 MW) to preserve water in the reservoirs.

The 60 MW capacity project will be constructed at a cost of Rs.300 crore across the Sileru river at Chitrakonda