The Telangana State (TS) has unveiled its plans to purchase thermal power from Andhra Pradesh (AP), following a tentative agreement between the two states.

Under the terms of the contract, the State will purchase the power, at a higher cost, while selling the thermal power produced in the state, at a lower price.

Furthermore, the Telangana State Transco, is losing crores of money, due to delay in submission of a report by the high-level panel.

This high level panel, is in turn, constituted by the Central government.

The share of Andhra Pradesh, in thermal power plants, located in TS is 44%, and TS share in thermal power stations located in AP is 54%.

Accordingly, the TS share of power produced by thermal power plants, located in AP is about 2,210 MW, while AP’s share of power produced in thermal power plants located in TS is about 795 MW.

Higher coal transportation costs, are the main reason for the cost of power generation, for thermal power plants located in AP.

While thermal power plants in TS are located closer to the source of coal, thus reducing the cost of power generation.

In AP the highest cost per unit is Rs 20.57 and the lowest is Rs 5.57, while it is Rs 4.69 to Rs 3.60 in TS.

This implies that TS is selling power, at the lowest possible price to AP and purchasing it at the possible price.

As per calculations made by the officials, the financial burden on TS Transco is about Rs 1,000 crore every year.

TS, at the time of separation, had opted to share power as per the agreement reached in the undivided state.

Now, TS wants the power plants to be shared on location basis, so that it can utilize the entire power generated in the thermal plants located in Telangana.

Moreover, AP can utilize the power generated by plants located in Andhra region.

However, the officials have stated that, the State cannot cancel the agreement presently, and hence, it is waiting for the report of the high level panel committees.

Once the committee report is submitted, then both the states can take a decision accordingly, said the officials.

By Supraja