Delay in signing PPA with NTPC will cost Telangana dearly, says Kishan Reddy
Kishan Reddy said the NTPC had already warned that if the State government failed to sign an agreement with it, the company would sign agreements with other States and Telangana would not be supplied power.
Hyderabad: Union Coal and Mines Minister G Kishan Reddy on Sunday cautioned that the delay in entering into a Public Private Partnership (PPA) agreement with the National Thermal Power Corporation, (NTPC) Ramagundam by the State government would result in the State losing power supply from the power plant.
Addressing a press conference in Delhi, Kishan Reddy said the NTPC had already warned that if the State government failed to sign an agreement with it, the company would sign agreements with other States and Telangana would not be supplied power.
As per Andhra Pradesh Reorganisation Act 2014, the NTPC was to set up a 4,000 MW thermal power plant in the State and the NTPC had completed 1600 MW, he said, adding that to take up the balance 2400 MW work and getting bank loans, the NTPC needs to sign a PPA with the State government but the latter was not signing it though the power company had written to it several times. “I wrote letters to the State government four times asking for a quick response and cooperation in the matter of PPA but so far there is no response,” he said.
Stating that as per the Reorganisation Act, Telangana was supposed to get 85 percent of the power generated through the NTPC plant, he said the State had already signed a PPA for the first phase of 1600 MW and if it failed to do so for the second phase, it would lose precious power generated through the project.
He said keeping the interest of the State in mind, the State government should signed the PPA at the earliest.
