250 Mw Andhra Power Plant Completed

There is a ray of hope for power-starved Andhra Pradesh following the completion of a new 250 mega watts (mw) thermal plant at the state electricity boards Kothagudem thermal complex. The plant is expected to be synchronised with the grid in a day or two.

The construction of the new unit is part of the Planning Commission-approved 500 mw expansion to the Kothagudem complex, at an estimated cost of Rs 1,424 crore. The plant was completed within budget in a record time of 31 months, against the normal 45 months.

The new plant is the ninth unit to come up in the Kothagudem complex, which is probably the oldest thermal complex in the state. A tenth unit, which will also have a capacity of 250 mw, is expected to be synchronised with the grid by October.

The early completion of the ninth unit was largely facilitated by the timely release of Rs 410 crore by the Power Finance Corporation (PFC).

In a landmark decision, the Andhra Pradesh government allowed the state electricity board to impose a levy on farm consumers for the first time. This enabled the unit to achieve a statutory rate of return of 3 per cent, which is a PFC norm.

The state electricity board is already planning yet another phase of expansion after the current one is completed.