Govt to come up with new power policy after lifting of poll code

Hyderabad: The Telangana government will introduce a new power policy aimed at providing affordable supply and to generate power at a lower cost in the State Assembly soon after the election code is lifted.

According to officials, the State has a maximum electricity peak load demand of 15623 mw. Power companies estimate the peak demand will be 27,059 mw by 2031-32. The new policy prioritises arrangements and strategies to meet future energy needs without shortages. It envisages future plans in accordance with current practices as well as electricity laws.

To generate electricity at a low price, to promote manufacture and supply of renewable power, to invite private companies that supply at a low price, the government is preparing a new policy with the objectives of shaping the generation and supply systems in accordance with public interest in partnership with private companies. Efforts are being made to draft the Telangana Power Policy to be ideal for the country without putting too much burden on the consumers. It is expected to invite and enter into agreements with private companies that come forward to produce and supply large amounts of renewable electricity.

Stating that Himachal Pradesh had enormous potential for hydropower generation, officials said there are plans to set up a huge hydro- electric plant there by investing in the government itself. It is planned to partner with private companies to reduce the investment burden; it will be profitable if electricity produced there is supplied here at a low price. Recently, it is learnt that CM A Revanth Reddy had met HP CM Sukhwinder Singh in Delhi.

Officials said the ‘sins’ committed by the previous government for decades have become a stumbling block for power companies in the State. The NTPC’s 4,000 mw, which was supposed to come to Telangana as per the Reorganisation Act, had not been fully made available even after ten years. Due to this, the burden of electricity purchase increased on Discoms. The previous government followed an atmosphere of conflict with the Centre over the interests of Telangana. It neglected to set up the power plants which should have already been achieved in view of the future requirements, increasing domestic electricity demand and free power requirement for agriculture. The NTPC electricity would have been available less than five years ago if it was started when Telangana was formed.

The officials said the Yadadri Thermal Power Plant inaugurated by the previous government was still not completed. Due to corruption, the cost of electricity installation and construction has increased significantly.

The officials said of 4,000 mw NTPC power, only 1,600 mw plant has been made available so far. It will take another five years to complete the second phase of 2,400 mw plant which was started recently. 85% of that electricity is being provided by the Center to the State. The NTPC rate is Rs 5.90/unit. When the new plant is completed, the price is expected to reach Rs 8-9. Electricity is available at a lower rate in the open market. Due to advanced technology that has become available in the last decade, renewable electricity generation is available for less than Rs.2-4/unit. In such a case, if NTPC buys electricity at a higher rate, Discoms will suffer huge losses.