Hyderabad, Oct 14 (Inditop.com) The Andhra Pradesh government has permitted four private power producers to sell electricity in the open market, triggering fears that the energy shortage in the state would deepen.
The state government late Tuesday issued an order allowing four companies — GVK Industries, Konaseema, Gautami Power and Vemagiri Power — to sell 20 MW for every 100 MW produced to third parties when gas supply is normal.
Given their generation capacity, these gas-based power producers can sell about 300 MW in the open market, and not necessarily to the state-run Andhra Pradesh Transmission Corp (AP Transco).
Under the government order, the four firms can also sell power produced over and above this.
People associated with the energy sector have criticised the move, saying it was aimed at benefiting the four companies and not necessarily the state.
Andhra Pradesh is already in the grip of an acute power crisis following the recent floods that damaged the power units at Srisailam dam across Krishna river.
Critics of the government order said the move would not only add to the power shortage but also burden the state exchequer.
According to them, if AP Transco had to buy this electricity in the open market, it would cost the state an extra Rs.1,450 crore every year.
It is feared that the move could also increase daily power shortage from 15 million units to 25 million units. At the moment, power cuts range from one to two hours in urban centres and three to five hours in rural areas.
The 770 MW right bank powerhouse at Srisailam dam may take five months to become operational, while the 900 MW left bank unit could take a few weeks.
The state government has already sought 1,000 MW from unallocated share from central generating stations to tide over the shortage.
The power crisis is also delaying a promised scheme to increase supply of free electricity to farmers.
Chief Minister K. Rosaiah had recently announced that the government would fulfil this promise made by his predecessor Y.S. Rajasekhara Reddy in this year’s elections.
