Chairmen and managing directors of four power utilities in the State have stated that they have been acting professionally only by keeping the interests of Telangana in mind and all their decisions pertaining to generation capacity addition, strengthening the transmission and distribution (T&D) network and procurement of power so far were transparent.
Speaking to reporters here on Tuesday, CMD of TS-Genco and TS-Transco D. Prabhakar Rao along with the CMDs of TSSPDCL G. Raghuma Reddy and TSNPDCL A. Gopal Rao clarified on the allegations made by State president of BJP K. Laxman that all power purchase agreements (PPAs) entered into with producers after formation of Telangana were within the stipulated guidelines and approval of the regulatory commission.
Terming the allegation that they had refused NTPC offer of power at ₹4.50 per unit as baseless, Mr. Prabhakar Rao explained that NTPC had offered them 400 MW of bundled solar power in the price band of ₹4.66 per unit to ₹5.19 per unit in 2016 and PPAs were entered into accordingly. On the charge of irregularities in other solar power PPAs, he stated that open tenders were called in 2015 and the PPAs entered into by the two Discoms were at lower rates than in other States and the renewable energy tariff guidelines.
On the losses of Discoms, Mr. Rao said Discoms in all other States except in Haryana in the country were running in losses and their accumulated losses of ₹11,897 crore as on September 30, 2015 were taken over by the State government following their joining of UDAY scheme. The government had provided ₹7,200 crore to the Discoms in addition to subsidy amount during the last four years.
Further, they had also made huge capital expenditure by borrowing about ₹35,000 crore for capacity addition and ₹23,000 crore on T&D network strengthening. They were repaying the borrowings at ₹3,500 crore a year and another ₹3,000 crore a year burden was forced on them due to increase in coal prices and levying of clean energy cess of ₹400 per tonnel of coal. Another ₹1,600 crore a year was being borne additionally for employees.
On short term purchases, the CMD said they had to go for it at prevailing competitive market prices by calling tenders to ensure quality 24x7 power as there was generation gap of over 10,800 million units hydel energy. against the regulatory commission estimates during the last four years and it was the practice being followed by every State in the country. However, baseless allegations being made against them were weakening their morale, Mr. Rao noted.
