Telangana Energy dept to raise additional loan of ₹7,037 cr for Yadadri Thermal Power Station

Telangana Government secures ₹7,037 crore loan for Yadadri Thermal Power Station, aiming for completion by next year.

Telangana Government has decided to raise an additional loan of ₹7,037 crore from the Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) for the Yadadri Thermal Power Station (YTPS) coming up at Damaracherla in Nalgonda district. Major chunk of the works are completed and the loan would be raised for speedy commissioning (power generation) of the project.

The State Cabinet, which met here on Saturday (October 28, 2024), gave its approval for the revised comfort letter in favour of PFC and REC forwarded by the Energy department. The development comes in the light of a series of review meetings conducted by Deputy Chief Minister Mallu Bhatti Vikramarka who holds the Energy portfolio.

The Deputy Chief Minister is upset that the 5X800 MW project - whose zero date was June 1, 2015 and received clearances in 2017 - was yet to be completed. As a result, the initial cost of the project which was ₹2,099 crore (₹ 6.27 crore per Megawatt) rose to ₹34,543 crore (₹8.64 crore per MW). “Here, it may be mentioned that NTPC Ramagundam phase-I is being constructed with a cost of ₹7.63 Cr/MW,” the Government said in the white paper on energy released few months ago.

Mr. Vikramarka is particular that the project should be completed in all respects and should be ready for commissioning by next year end. Accordingly, it has been decided to obtain an additional loan for which the PFC and REC too reportedly gave their consent. The two institutions already entered into financial tie up with the State Government with REC sanctioning ₹16,950 crore for the first four units and the PFC subsequently agreeing to lend ₹4,009 crore for the fifth unit.