Union Power Ministry to convene meet on PPA for NTPC’s 800 MW unit at Ramagundam
The Hindu
Union Ministry to finalize Power Purchase Agreement for 800 MW project at Ramagundam\
The Union Ministry of Power has said that it will convene a meeting soon to finalise the Power Purchase Agreement (PPA) pertaining to the 800 MW energy of 4,000 MW power project being developed by the NTPC at Ramagundam.
The Union Ministry has informed that the process for setting up the remaining 1,600 MW projects too is underway. The Power Ministry submitted its response to the Union Home Secretary during a meeting convened last month to review the progress of educational institutions/infrastructure projects promised to Telangana as part of the Andhra Pradesh Reorganisation Act 2014.
Senior State Government officials acknowledged that the NTPC had set up phase-I (2X800 MW) power project and the State’s power distribution companies signed Power Purchase Agreement (PPA) with the NTPC and were drawing power. The State Government had given its consent for availing 800 MW from unit I (800 MW) power of phase-II provided that NTPC would connect that unit to TGTransco network to avoid Inter State Transmission System (ISTS) charges and losses.
The NTPC had submitted the draft PPA for the 800 MW project which was under scrutiny. The development follows the controversy over the project after Union Minister G. Kishan Reddy claimed that the Congress Government had not cleared the file forwarded by the Central Government for taking up works on the second phase of the 4,000 MW project.
Chief Minister A. Revanth Reddy said during the budget session of the Legislative Assembly that the government was closely examining the proposals sent by NTPC for entering into an agreement for supply of 85% power from the proposed new unit. The public sector firm was currently supplying power at ₹5.3 a unit and the cost per unit could rise to ₹8 to ₹9 a unit as the project would take four to five years for completion. Signing an agreement at this juncture would make it mandatory for the State to buy power from the project in spite of the high costs, he added.
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