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JUN 08 2017

Andhra Pradesh wants Telangana to settle all its power dues

  • Economic Times, ET Bureau / Hyderabad
  • Created: Thu 08th JUN 2017

 

In a development that could further strain the relations between the two Telugu-speaking states, Andhra Pradesh has demanded around Rs. 4,000 crore of long-pending power dues from Telangana and has warned of stalling supplies if dues weren't cleared.

Telangana needs more power than the residual Andhra Pradesh state owing to high demand from its industrial and agricultural consumers ­ the latter heavily dependent on groundwater for farming and gets free power.

Though most power generating stations are geographically located in residual Andhra Pradesh, the states are sharing power 43.11% and 56.89% respectively, based on a formula arrived on past usage.

Of 16,465-MW power generation assets of the erstwhile undivided state, the residual Andhra Pradesh owns over 60% in terms of geographical location, while Telangana owns less than 40% of generation capacities.

The residual Andhra Pradesh now claims that it was generating power by bearing the production costs and was supplying to Telangana ever since the bifurcation, and dues have piled up over the past three years. “We have asked Telangana to clear long pending dues of around Rs.4,000crore,“ said Ajay Jain, the energy secretary of Andhra government.

“Initially, Telangana power utilities had agreed to clear payments and subsequently raised certain disputes and stopped payments,“ he told ET.

Given the high costs involved in power production, residual Andhra Pradesh now views that it was viable to produce only to the extent of its requirements and cut down production by stalling around 375 MW of supplies to Telangana. Admitting receipt of notice from Andhra energy department, D PrabhakarRao, chairman of Telangana's power generation and transmission utilities, however, claimed the decision of AP to stall power supplies would not affect Telangana.

“We owe around Rs. 3,100 crore to Andhra against power supplies, while Andhra Pradesh owes us around Rs 2,000 crore, which leaves the balance ` at around Rs.1,100 crore or so,“ said Rao.“Andhra had earlier agreed to reconcile the accounts, but has now served the notice on us.“

Telangana, which has added around 4,100 MW of power generation capacities over the past three years after the state formation, currently has a total installed capacity of around 11,000 MW, said Rao.

“Honouring the power supply arrangement with Andhra, we were in fact backing down our power generation stations to the tune of over 500 MW. We will maintain cordial relations with Andhra despite its decision to stall power supplies as it will not affect us.“

Tags

TOTAL Andhra Pradesh Telangana Power Generation Energy United States Power

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