Indian cabinet approves proposal for higher allocation of power to host states after NTPC power projects are complete

The Union Cabinet chaired by Prime Minister  Narendra Modi has approved the proposal of Ministry of Power to allocate 85 per cent power to the Government of Telangana generated from Telangana Super Thermal Power Project (4000MW) of NTPC Ltd. The cabinet also approved the allocation of 85 per cent power from expansion project of Patratu Thermal Power Station (4000MW) of Patratu Vidyut Utpadan Nigam Limited (PVUNL), a subsidiary company of NTPC Ltd, to the State Government of Jharkhand.

Both the projects are being set up in two phases. Telangana Super Thermal Power Project (TSTPP) will come up at Ramagundam in Peddapalli district and the Patratu Super Thermal Power Station will come at Patratu in the Ramgarh district of Jharkhand. The first phase of the TSTPP will comprise two units of 800 MW each and second phase for three units of 800 MW each. Patratu Thermal Power Station (PTPS) will comprise three units of 800 MW each in first phase while two units 800 MW each in second phase.

The Andhra Pradesh Reorganization Act, 2014 mandates that NTPC shall establish a 4000 MW power facility in the successor state, Telengana, as mentioned in the Thirteenth Schedule of the Act.

The allocation of 85% power from PTPS expansion project (4000MW) was prime condition in the Joint Venture Agreement between Government of Jharkhand and NTPC Ltd. for 4000 MW capacity expansion of PTPS.

At present, Phase-I of both the projects are under construction. Telangana Super Thermal Power Project expected to commission in third quarter of 2020-2021. As per the investment approval dated 29.01.2016, the indicative completion cost of the Telangana Super Thermal Power Project (TSTPP) is Rs. 11,811.26 crore out of which Rs. 1,849 crore expenditure have been incurred up to March 2018.

Further, Phase-I of Patratu Super Thermal Power Station is expected to commission in fourth quarter of 2022-2023. As per the investment approval, the indicative completion cost of the PTPS expansion project is Rs. 18,668 crore out of which Rs. 247.66 crore expenditure have been incurred up to March, 2018.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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