AP bifurcation: Existing PPAs to continue in newly formed states

Unallocated power produced by Central generating stations will be distributed between two states based on actual energy consumption in last five years

The existing power purchase agreements (PPAs) in Andhra Pradesh with power projects shall continue with state-level power stations in the newly formed states as well as with Central power stations till their agreement period expires, according to the state special chief secretary (energy), Mrutyunjay Sahoo.

The power under existing PPAs is divided among four distribution companies (discoms) in the ratio of Central Power Distribution Company Limited (CPDCL) 46.06 per cent, Northern Power Distribution Company Limited (NPDCL) 15.87 per cent,  Southern Power Distribution Company Limited (SPDCL) 22.27 per cent and Eastern Powern Distribution Company Limited (EPDCL) 15.80 per cent.

The unallocated power produced by Central generating stations such as NTPC (15 per cent) will be distributed between the two states based on actual energy consumption in respective region in last five years. The ratio is Andhra Pradesh 47.83 per cent and Telangana 52.17 per cent.

According to a Raj Bhavan press release, Sahoo presented a detailed report on the reorganization of the AP Genco, APTransco, AP CPDCL and AP SPDCL to the state Governor, ESL Narasimhan, at a review meeting held on Monday. He said that the state reorganization guidelines were applicable to power sector also.

Sahoo stated that AP Genco power producing stations would be distributed based on geographical location. Committees were constituted for smooth bifurcation and operation in this regard.

The press release stated that industries principal secretary, Pradeep Chandra, had presented a report on the bifurcation of 89 companies and corporations. As these were established under various state and Central statues, he said, necessary proposals for demerger of these entities have to be made.

Further, the officials were stated to have brought to the notice of the Governor that they have certain problems with regard to the demerger of corporations if non officials were in place. They have explained that in the earlier cases of state division, the official boards were first formed and handed over to the respective governments. They suggested the Governor to follow the same procedure.

The Governor directed the officials to audit all the accounts of these organisations and update them as per rules in vogue. He also directed the finance department to coordinate with accountant general's office for proper accounts and audit purpose.   

The officials have also informed the Governor that presently there are 107 major training institutions functioning under 22 departments. Based on the preliminary examination, the meeting felt that 32 training institutions of various departments are needed to be continued in both the states and ensure their operation on the appointed day. Similarly, 15 universities are to be continued in the present status.