Southern and northern power distribution companies of Telangana have been called upon to sign power purchase agreements with Hinduja National Power Corporation Ltd, which is at the advanced stage of commissioning the 1,040-MW thermal power project near Visakhapatnam.

The erstwhile Andhra Pradesh State had earlier entered into an agreement. Now, with the state division, power generated from the project will be shared in the ratio of 53.89 and 44.11 between the two states.

Suresh Chanda, Principal Secretary Energy to Telangana Government, has directed the southern and northern power distribution companies and AP Transco to finalise the agreements.

AP Transco has been called upon to sign up with the two discoms in accordance to the sharing formula between the two states.

The Hinduja project is nearing completion after nearly two decades of its initial plans and is expected to be commissioned later during the year. This thermal project, which was delayed due to regulatory environment, will be a boon to both the states now facing severe power crunch.

During recent interactions, the AP Government has convinced the NTPC management to allow its rail sidings to be used to transport coal to the Hinduja plant site. The Hinduja project is located near the NTPC Simhadri project.

Hinduja National Power had earlier agreed to supply power generated from the plant to the state. Now, the Telangana Government is keen that the project gets implemented as per schedule during the year. By entering into power purchase agreements, they will also be able to benefit from the project as per the earlier plan to supply to the unified State.

As per the Government order, Telangana expects power sharing from the project in the ratio of 53:89: 46.11 between Telangana and AP.

The power supply will be decided at the tariff structure decided by the AP Electricity Regulatory Commission, which is a joint regulator for both the states.

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