The National Thermal Power Corporation (NTPC) is deliberating over the redistribution of power generated from Phase II of the Telangana Super Thermal Power Project (TSTPP) to other states, as the Telangana government lags in finalising a power purchase agreement (PPA) with the company.
This delay puts Telangana at risk of losing access to 85% of the 2,400-megawatt (MW) capacity that Phase II is set to generate. The NTPC said this recently in response to a Right to Information (RTI) petition filed by Inaganti Ravikumar. The company claimed it had addressed multiple letters to the State government asking it to enter into the agreement, but the latter failed to do so. As mandated by the Andhra Pradesh Reorganisation Act of 2014, NTPC is obligated to establish a 5×800 MW thermal power project to cater to Telangana’s specific needs, with 85% of the generated power allocated to the state. Phase I of the TSTPP, with a capacity of 2×800 MW, is already operational, meeting part of Telangana’s power requirements.
However, the initiation of Phase II, comprising 3×800 MW capacity, is contingent upon the signing of a PPA between NTPC and the Telangana government. Despite multiple communications from NTPC urging prompt action on the PPA, the agreement has yet to materialise. The latest communication from NTPC warned of offering the power to other states if the PPA was not signed by February 10, emphasising the urgency of the matter. While the Telangana government has expressed intent to finalise the PPA by February-end, as of March 20, the agreement remains pending. Meanwhile, the standing linkage committee has approved coal linkage for Phase II under the Shakti scheme, ensuring a steady supply of fuel for the project.
Phase II, estimated to cost ₹17,739 crore, promises to not only bolster power generation but also contribute to local employment. With the potential to provide energy at ₹4.12 per unit, subject to final tariff determination by the Central Electricity Regulatory Commission, Phase II holds significant implications for Telangana’s energy landscape. Despite assurances from the Telangana government regarding water supply for the project, the delay in finalising the PPA raises concerns about the timely commissioning and operation of Phase II, prompting NTPC to consider alternative avenues to utilise the generated power efficiently.
