Telangana has come a long way in power supply from being a huge deficit State in the sector when it was formed last year to bridging the demand – supply gap and ensuring there were no power cuts even in peak summer in 2015.
This was possible solely because the demand for power from agriculture sector had dropped drastically and the State entered short-term agreements to purchase about 2,000 MW on yearly basis with projects in southern region.
Such a scenario was not foreseeable a year ago when Telangana and Andhra Pradesh were locked in a running feud over power purchase agreements (PPAs) entered into prior to bifurcation. Telangana demanded validity to the PPAs but AP rejected the same.
The situation has turned the other way round with Telangana wanting no further continuation of the PPAs but compensation for the quantum lost from central generating stations. AP, on the other hand, wanted share in ongoing projects, particularly those of Singareni Collieries at Jaipur in Adilabad and Telangana Generation Corporation at Bhoopalpally in Warangal district.
Telangana has an installed generation capacity of 2,280 MW (thermal) and 1,980 MW (hydel) besides a share in Vijayawada and Rayalaseema thermal power stations, the central stations and gas based projects. It has a share of 53.89 per cent in VTPS and RTPS (both have an installed capacity of 2,810 MW) and 3,500 MW that is to be distributed by the central stations between the two States. Out of the 500 MW produced by the gas-based projects – GVK, Spectrum, Vemagiri, Gautami and Konaseema – AP and Telangana will continue to share in the ratio of 46.11 per cent and 53.89 per cent respectively.
The comfortable power position this year owed to agricultural demand which was 170 to 180 million units a day in kharif dipping substantially in rabi last year after the government said it could not supply. The farmers shifted to irrigated dry crops in rabi and the same situation prevailed in kharif this year. It was not only power supply but poor lending of loans and calamities that contributed to a fall in agricultural demand in power sector this year. The demand in rabi last year was 145 to 150 MU which further fell to 140 to 145 MU per day this year.
On the other hand, AP cancelled its short-term agreements and Telangana lapped them up to make up for whatever small shortage of power.
