Telangana To Buy 1000 MW In A Power & Coal Partnership With Chhattisgarh

After purchasing 250 MW from Karnataka, Telangana is moving ahead with it’s plans to buy power and coal from Chhattisgarh in the long term. A visit planned by Suresh Chanda (Telangana’s Principal Secretary, Energy) 2 days ago, to Raipur, was cancelled due to the power emergency created by AP’s defiance in adhering to PPAs. Today, a team of Telangana officials visited Raipur and met with Chhattisgarh officials on reaching an agreement over buying power and coal over the long term of 25 years. Chhattisgarh, Telangana’s northern neighbor, has India’s 3rd biggest coal reserves and 2nd largest coal production. It has surplus power and is a key exporter of power to other States.

KCR Spoke to Chhattisgarh CM Raman Singh earlier about Telangana’s plans to buy power to which he readily agreed. In today’s meeting, Telangana seems to have made an initial proposal to buy a minimum of 1000 MW over next few years from Chhattisgarh. Chhattisgarh’s response is awaited. Telangana has teething transmission issues as there are no transmission lines from Chhattisgarh to Telangana, except the one in Sileru in Khammam, which the Centre is keen to gift away to AP. So Telangana’s plans are to decide the further course of action on laying transmission lines depending on Chhattisgarh’s response for a long-term arrangement. If it agrees, Telangana will start the tedious and costly exercise of laying the transmission lines over River Godavari between between Jagdalpur in Chhattisgarh and Bhupalpally in Warangal. This needs a minimum of 11 months even if work is done on a war footing, as per the CM himself. 

Another option Telangana is actively considering is laying another transmission line between Wardha in Maharashtra and Dichpally in Nizamabad. This transmission line could be done faster, considering the geography and the environmental challenges. This line can be used to buy power from Chhattisgarh through the grid. So Telangana’s emphasis on either of the transmission lines depends on the cost and terms of the agreement with Chhattisgarh.

Telangana needs coal to power it’s thermal ambitions of establishing 10 thermal power plants. Even NTPC is ready to expand in Ramagundam provided Telangana allots the required coal reserves. That makes Telangana’s partnership with coal-rich Chhattisgarh all the more important. More news is expected this week on the progress in this regard.