Discoms told to sign PPAs with HNPCL

The Telangana State government on Friday asked the heads of two discoms in the State to enter into Power Purchase Agreements (PPAs) with the Hinduja National Power Corporation Limited (HNPCL) in accordance with the continuation agreement signed in May last in united Andhra Pradesh.

The government order released by the Energy Department asked the TSSPDCL and TSNPDCL to sign PPAs for the sale of 53.89 per cent power to be generated from HNPCL’s 1040 MW Thermal Power Project in Visakhapatnam, as per the predetermined ratio between Telangana and Andhra Pradesh. The first unit of HNPCL is due for launch since March this year, but is reportedly facing problems of railway connectivity.

It may be recalled that GO.20 determined power sharing between Telangana and AP at 53.89 per cent and 46.11 per cent respectively, from all the projects for which PPAs had been signed in the erstwhile State.

Coal plants

The government had signed an MoU with HNPCL way back in 1992, for the power to be generated from its two coal fired plants of 520 MW each.

However, the project was caught in various environmental and policy-related wrangles, and was almost shelved. It got a new lease of life in 2008, and subsequent to that, the discoms signed a Continuation Agreement last year for resumption of the PPAs, based on the consent of HNPCL for sale of all the power to the State, at the rate determined by APERC.

The latest government order assumes significance in the context of AP government’s declaration that it was withdrawing from all the PPAs for which APERC’s approval is pending. While HNPCL is a private generating station, land subsidy was granted by the erstwhile AP government, sources said.

Energy Secretary Suresh Chanda was not available for his comment.

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