Signing a Purchase Agreement (PPA) for the upcoming 800 MW plant NTPC in Ramagundam between the state government and NTPC is likely to take more time.
The state government signed a PPA for the supply of 1600 MW (2×800 MW) from the 4,000 MW plants, which were provided under the Act on the Reorganization of Andhra Pradesh 2014 because they became functional. The PPA proposal for the third 800 MW unit was presented by the NTPC, but this problem was referred to the Central Office for Electricity, as the central energy services were looking for some PPA design modifications.
The delay in the PPA signature is governed by concerns expressed by the main Minister A. Revanth Reddy that the cost of a unit that was RS. 5.3 From now on it could significantly increase through Rs. 8 The unit in the coming days because it would take four to five years to complete the remaining 2,400 MW (3×800 MW). Signing PPA at this moment would ensure that the state would have to buy 85 % of energy after completion of the project, regardless of the cost of the moment.
“The signing of the agreement will cause Telangana to be inevitable to bear additional costs. The fee for the unit will be determined on the basis of capital costs incurred on the project, expenditure on the connection of coal and profit, which will be more expensive,” the main minister said during the budget meeting. Instead, the state could conclude an agreement with NTPC at the right time depending on the state’s energy requirements.
The Ministry of the Interior of the Union stated that the state that justified the main minister’s concern said that the state must absorb the entire energy generated by the NTPC unit because the power plant was established for the TELANGANA state. The Minister of the Interior of the Union Govind Mohan noted during the recent meeting that the TELANGANY government should consider the absorption of a full 1,600 MW power that has been generated from two units that are still functional.
Published – 27 April 2025 20:38
