Telangana Cabinet approves new Discom, underground power cabling

Telangana Cabinet approves a new power distribution company, underground cabling in Hyderabad, and tenders for 3,000 MW solar and 2,000 MW pump storage power. Plans include 10,000 MW pumped storage plants and an 800 MW Ramagundam Thermal Power plant with NTPC

Hyderabad: The State Cabinet on Tuesday approved a proposal to permit new projects for captive power generation, besides establishing a new power distribution company (Discom) in addition to the existing Northern and Southern power distribution companies. It also decided to go for underground power cabling system in Hyderabad.

Agricultural power connections, lift irrigation schemes, Mission Bhagiratha, safe drinking water schemes and power connections of the HMWSSB would be brought under the purview of the new Discom, Industries Minister D Sridhar Babu said while briefing the media on the Cabinet meeting held here on Tuesday.

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To increase renewable energy production and as per Central government regulations, the Cabinet decided to increase the renewable power production in the State. Accordingly, it was decided to procure 3,000 MW solar power and float tenders for the purpose at the earliest with a contract period of five years, he said.

The Cabinet also decided to float tenders for procurement of 2,000 MW pump storage power. The tenders’ contract period would be for five years, the Minister said, adding that the Cabinet had also approved the proposal for setting up 10,000 MW pumped storage plants in the State. Conditions would also be imposed that the power generated through the pumped storage plants would have to be sold to the Discoms. On its part, the government would be providing land and water for the companies evincing interest in establishing such plants, he said.

It was decided to establish a new 800 MW plant at the Ramagundam Thermal Power plant in collaboration with NTPC. Officials had been instructed to explore the possibilities of establishing plants at Paloncha and Makthal as well, the Minister said, adding that between NTPC and GENCO, whichever entity produced power at the lowest price, would be awarded the work.

The Cabinet also decided to establish an underground power cabling system in Hyderabad. A committee has already examined the underground cabling system in Bengaluru and the best practices being adopted in different States. “It is estimated to cost Rs 14,725 crore to execute the underground cabling system in GHMC limits,” the Minister said, adding that depending on operational circles, Hyderabad city would be categorised into three zones for the project.

In addition to power lines, T-Fibre and other cable network lines would be established underground. A meeting on this would be conducted with the companies involved, he said.

On the plan to merge 27 ULBs with GHMC, the Industries Minister said the idea was to ensure uniformity in development, administration and welfare.

“As of now, no decision has been taken on increasing taxes and revenue generation in the 27 ULBs to be merged with GHMC. Similarly, no decision has been taken on dividing the GHMC into four corporations or continuing it as one corporation,” he added.