Laxman accuses Telangana govt of delaying PPA with NTPC

Laxman 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: Senior BJP leader and Rajya Sabha member K Laxman said the delay in entering into Public Private Partnership (PPA) agreement with National Thermal Power Corporation, (NTPC) Ramagundem by the State government would result in the State losing power supply from the power plant.

Addressing a press conference here on Friday, Laxman 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.

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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 loan the NTPC need to sign a PPA with the State government but the latter was not signing it though the power company had written to it thrice in last two months.

The feasibility report of the second phase of the project had been approved at a cost of Rs 11,572 crore, but since the State government had so far not come forward to sign the PPA it had become difficult for NTPC to take up the project, he said. ” Already the State has signed a PPA for the first phase 1600 MW and if it fails to do so for the second phase it would lose precious power generated through the project. As per Reorganisation Act Telangana is supposed to get 85 percent of the power generated through NTPC plant,”he pointed out.

Already the State was facing power shortage and if the State government delayed the PPA the State might face power shortage in the future too, he warned.