HYDERABAD: Andhra Pradesh state government has approved the purchase of hundred per cent power from the Visakhapatnam plant of the Hinduja National Corporation Limited. The government has directed utilities, Eastern Power Distribution Company Limited (Visakhapatnam) and Southern Power Distribution Company Limited (Tirupati), to purchase the entire 1040 MW from the HNPCL as per tariff approved by the AP Electricity Regulatory Commission.
The decision however, might take a wrong turn with neighbour Telangana and AP both at loggerheads over sharing of power. Both the regions have sought their due share from the Krishnapatnam and Hinduja power projects as work on the two projects was commissioned in the erstwhile united state and the Telangana utilities had made significant investments in the two projects. AP's move to buy all the power from Hinduja plant saw opposition from Telangana power utilities as it was seen to be in contravention of the provisions of the AP Reorganisation Act.
The X schedule of the Act stipulates that existing power purchase agreements with respective distribution companies should continue for the ongoing as well as projects under construction. The Act also stipulated that power generated in both the states should be shared in the ratio of 53.89 per cent and 46.11 per cent between Telangana and AP respectively. Telangana Chief Minister K Chandrasekhar Rao said he would lodge a complaint with the Union Power Ministry and take a legal recourse if his state does not get its due share. He alleged that the AP government mounted pressure on the promoters of the Hinduja power plant to sell the entire power to his state in violation of the Reorganisation Act.
Meanwhile, the APERC has decided to conduct a public hearing on June 18 on the proposed power purchase agreement to be signed by the EPDCL and SPDCL with the HNPCL.
