Hyderabad Top News

Telangana faces Rs 6,000 crore loss in power purchase agreements, say sources

Kcr Power Purchase Investigation

Hyderabad: Telangana officials have refuted former Chief Minister K Chandrasekhar Rao’s claims regarding the power purchase agreement (PPA) with Chhattisgarh. They stated that Telangana suffered a loss of Rs 6,000 crore as a result of the PPA, which had not been approved by the Telangana State Electricity Regulatory Commission (TSERC).

Several days ago, KCR expressed strong criticism towards the Justice Narasimha Reddy Commission of Inquiry (CoI) regarding its scrutiny of power purchase agreements (PPAs) and power plant construction issues that were previously sanctioned by the TSERC. KCR denounced the commission as unauthorized and went as far as calling for the resignation of the former Chief Justice of the Patna High Court.

Officials stated that although the Power Purchase Agreement (PPA) with Chhattisgarh was fully operational by the end of 2017, the power supply of 1,000 MW was not fully fulfilled. This led to Telangana having to purchase power from the market, resulting in an additional expense of Rs 2,083 crore between 2017 and 2022, according to officials.

“The previous BRS government claimed it purchased power at Rs 3.90 per unit, but it actually spent Rs 5.64 per unit when factoring in other expenses. After signing a Power Purchase Agreement (PPA), Telangana bought 17,996 million units between 2017 and 2022 for Rs 7,719 crore. While the government claimed dues to Chhattisgarh were Rs 1,081 crore, the transmission charge for supplying power was Rs 1,362 crore. Taking all this into account, the per unit expenditure came to Rs 5.64, which is Rs 3,110 crore more than the agreed price of Rs 3.90 per unit,” a senior official said.