“NTPC’s Telangana Project in Limbo as New Congress Government Shows PPA Initiative”
In the midst of bureaucratic hurdles, the National Thermal Power Corporation (NTPC) finds itself in a state of uncertainty regarding the second phase of its power project in Telangana. Originating from the Apportionment Act following the bifurcation of Telangana from Andhra Pradesh in 2014, the project has faced a multitude of challenges along its path to fruition.
The inaugural phase of the project, boasting a capacity of 1600 MW, saw successful completion under the tenure of the NDA government. However, the subsequent expansion, aiming to add a substantial 2400 MW to the grid, has encountered a bureaucratic deadlock, further aggravated by the lack of response from the state government.
Despite NTPC’s persistent efforts, which included multiple appeals to the previous BRS government and subsequent overtures to the new administration, progress on crucial matters such as the Power Purchase Agreement (PPA) has remained elusive. This reticence from the state government has cast a shadow of uncertainty over the fate of the project.
Adding to NTPC’s mounting frustrations are allegations of corruption surrounding the procurement of electricity, exacerbating the already complex situation. The urgency for finalizing a PPA cannot be overstated, as it stands as a linchpin for securing financial closures essential for the project’s advancement. However, while promises have been made by the new government to expedite the agreement process, concrete actions are yet to materialize, leaving NTPC with limited options, including the possibility of relocating the project.
In a recent development, a glimmer of hope emerges as the new Congress government in Telangana takes proactive steps to engage with NTPC regarding the PPA. While this marks a positive turn of events, the project’s future still remains uncertain, pending concrete progress.
Addressing concerns regarding electricity pricing, NTPC has disclosed a proposed tariff of Rs. 4.12 paise per kilowatt-hour, subject to approval by the Central Electricity Regulatory Commission. Additionally, pending approvals for essential resources such as water from the Godavari River further complicate the project’s prospects.
Despite repeated inquiries, the response from the state government remains tepid, with no discernible progress noted in the past 15 months. As stakeholders await a decisive course of action, the fate of NTPC’s ambitious Telangana venture remains contingent upon the government’s willingness to facilitate necessary agreements and approvals, thus determining whether the project will proceed or remain ensnared in administrative limbo.
