Power Situation Grim In Andhra Pradesh

The power crisis in Andhra Pradesh is likely to worsen in the coming years with no major power project slated for commissioning till 2002.

The state requires a generation capacity of 9,750 mw, with demand growing at over 10 per cent annually.

Against this, the installed capacity as on April 1 stood at 7,276.62 mw 5,612 mw in the state sector, 897 mw in the Central sector, 495.12 mw in the private and 272.5 mw in the joint sector.

The last power station to be installed in the state sector, Kothagudem Stage V second unit of 250 mw, became operational last month, while a private sector plant, the 208 mw gas-based Spectrum Power Generation Ltd, Kakinada, started commercial production only last week.

 

The year 1997-98 saw commercial operation of an additional 512.68 mw in the state, of which 250 mw was in the state sector and the rest in the private sector.

Although there are six major projects in the pipeline, accounting for an additional 4,210 mw, none of their first units are slated for commissioning before 2002.

These are: the 1,040 mw project at Visakhapatnam (Hindujas), the 500 mw project at Krishnapatnam (GVK Industries), the 500 mw project at Krishnapatnam (Besicorp Brooklyn), the 520 mw Ramagundam project (BPL), the 1000 mw project at Visakhapatnam (NTPC) and the naphtha-based 650 mw project at Hyderabad (NTPC).

For any new generation before 2002, the state is dependent upon the short-gestation and mini power stations. Several agreements are said to have been signed with the Andhra Pradesh State Electricity Board (APSEB) for the setting up of such units.

Chief Minister N Chandrababu Naidu, who also holds the power portfolio, is hopeful of adding 250 mw this year, mainly through mini hydel stations of less than 5 mw each, wind power, co-generation, biomass and baggasse based generation.

Faced with a grim situation, the state has asked the Centre for 500 mw from the eastern grid and another 200 mw from the western grid for the next three or four years.

But with transmission bottlenecks, especially in the eastern region , the Central governments ability to help the state is limited.

Even if the problem of evacuation of power from one grid to another is overcome through strengthening of the existing transmission system, the price of the power to be supplied will be another bone of contention.

On this front, the Centre has made it clear to the state that it can only ask the Grid Corporation of India to assist the state in negotiating a reasonable rate.

Liquidity is likely to be another problem. In the wake of default in payment, prospective power sellers are ready to make supplies only if a letter of credit is opened.

And this is something which the state electricity board may not be in a position to do with its 1997-98 deficit running to Rs 1,172.31 crore and outstanding liabilities, including payment towards power purchases, standing at Rs 2,600.40 crore as on March 31.