Local coal can make power cheaper: CM KCR

Hyderabad: Telangana Chief Minister K Chandrashekar Rao on Saturday demanded that the Union government take necessary measures to ensure reduction of the cost of thermal power generation by bringing changes in the existing policy in the allotment of coal to the states which relied more on thermal power to meet the growing power demand.

The CM decided to pursue seriously the issue of arbitrary allocations of coal with the new government which will assume at the Centre soon.

KCR accompanied by Chief Secretary SK Joshi, Telangana Transco and Genco Chairman and Managing Director D Prabhakar Rao visited the NTPC (National Thermal Power Corporation) power plant which is under construction with 1600 MW installed capacity at Ramagundam in old Karimnagar district.

He expressed serious concern on the lopsided policies adopted by the Centre in allocation of coal.

It was unfortunate that the Telangana state would have to transport coal from Mandakini coalfields in Orissa located 950 km away from the thermal plants, to meet the coal demand on a day-to-day basis though the Telangana state has abundance of coal reserves in Singareni collieries.

Due to transport of coal from far off places, the chief minister said the power generation cost escalated every year. "If the state utilises locally available coal resources, production cost will be minimal," he added.

The CM wanted the Centre should allow the NTPC-owned power plants to utilise local coal to reduce the transport burden.

KCR said that he will write a letter to the Union government seeking to bring policy changes and take every initiative to address the coal allocation issue to the NTPC-owned power plants.

To increase the power generation, KCR said that the NTPC will be permitted to set up solar power plants at lift irrigation projects so that the required power demand can be met instantly in the future.

He requested NTPC Chairman Gurudeep Singh to allot 2000 MW of power to the state for agricultural and industrial needs.

The NTPC officials informed the CM that the new plant will be commissioned in October and another plant proposed with 1600 MW installed capacity will be operational in February 2021.

Under AP Reorgnisation Act 2014, the Centre made the promise of setting up of 4,000 MW capacity thermal power plant. Due to some procedural delay, the plant establishment works were started last year.

The CM explained NTPC officials the requirement of power for lift irrigation schemes, round-the-clock power supply to farming sector and industrial needs.

KCR also reviewed on the progress in the revival of Fertilizers Corporation of India (FCI).

FCI officials informed KCR that the fertilizer production will commence from December this year.