State To Buy Power From NTPP

Chief Minister N Kiran Kumar Reddy on Sunday signed a file clearing the way for purchasing and availing 50% of the power generated from the proposed 4,000 MW power project to be set by the National Thermal Power Project.

The 50% of power (2,000 MW) from the proposed 4,000 MW power project to be set up at a cost of Rs. 23,000 crore will be purchased by the government at a tariff to be decided by the Central Electricity Regulatory Authority (CERC).

This new NTPC power project will help meet the ever-growing demand for power in the state due to rapid industrialisation and extensive agricultural operations.

It may be recalled here that during November 2010, the state government had conveyed its willingness for the implementation of a 4,000 MW project in Visakhapatnam district by NTPC subject to the condition that at least 50% of the power produced from the project will be allocated to the state.

Further, the government will facilitate necessary clearances required for the project and provide the requisite land, water and other requirements. In response, during the last month, NTPC sent a draft power purchase agreement to be entered between NTPC and APDISCOMs accordingly.

Principal Secretary (Energy) Suthirtha Bhattacharya informed that the power purchase agreements between NTPC and APDISCOMs will be done shortly.

The Chief Minister expressed happiness that this was another critical step taken by the state government to promote power generation which will help the state to have access to power matching the ever-increasing needs.

Kiran Kumar Reddy also asked the APGENCO to complete its projects on schedule so that power supply in the State could be improved to a large extent. APGENCO's power generation in the next 5 years would be more than the capacity added during the last 5 decades.

Chief Secretary S V Prasad, the Principal Secretary, Energy, Suthirtha Bhattacharya and the Secretary to CM, Jawahar Reddy, were also present.

Courtesy: INN