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Telangana’s very costly power deal with Chattisgarh

Telangana’s 1000 MW Power deal can prove to be very costly for the state which means a lot of burden to the people. The PPA is for 12 years and an additional burden of over Rs 1,050 crore on consumers in the state every year.

This will mean that people have to bear a burden of Rs 12,600 crore over the period. The state if opted for competitive bidding would have got the power for 4.15 Rupees per unit. But they have gone for an MOU where the state may have to pay nearly 6 per unit.

During this period, Telangana would end up paying the capital cost of the Chhattisgarh power plant. In the wake of the state government’s claims that the state would become power surplus by 2018-19, this PPA for 12-year tenure with Chhattisgarh is not justified.