'MoU with Chhattisgarh for power purchase transparent'.

Telangana State Power Distribution Companies (TS Discoms) will follow the directions to be given by the Telangana State Electricity Regulatory Committee (ERC) with regard to the Power Purchase Agreement (PPA) signed with the Chhattisgarh State Discoms for purchase of 1,000 MW power.

This was clarified by the Telangana State Power Engineers Association here on Thursday. “The Memorandum of Understanding (MoU) between Chhattisgarh State Genco for purchase of power from its upcoming power plant at Marwa is more transparent and beyond any doubt or controversy. Tariff determination will be in the jurisdiction of the Chhattisgarh ERC and it is expected to be reasonable,” claimed president A. Sudhakar Rao and secretary general G. Sampath Kumar. In a detailed press communiqué defending the power pact, they said the initiative to develop power through the public sector has been appreciated by one and all. And, the terms and conditions of PPA were framed on purely commercial and business ethics. “Paying of fixed charges for contracted capacity without utilising the power due to non-availability of transmission corridor is purely hypothetical and baseless,” they affirmed.

The TS Discoms opted for long term PPAs because of the competition among the Southern States and priority will be given to the former. The TS Government had opted for MoU route rather than competitive bidding only after carrying out brainstorming sessions with stakeholders as there were constraints of corridor from other grids to the South grid.

“There is no guarantee for TS Discoms for getting inexpensive power through competitive bidding process due to huge competition for the corridor and the ERC is the competent authority to approve either negotiated tariff or to adopt competitive bidding process as per provisions,” explained the association.

It also said the TS Government is intent on tackling the power crises on a long term basis and had planned for huge capacity addition by grounding new power plants.

THE HINDU