Power sector on verge of collapse
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Reeling under losses of about Rs 23,000 crore, the four state Discoms may go kaput any time, leading to a “total collapse” of the entire power sector, officials indicated on Tuesday. While a large number of projects are awaiting coal and gas linkage, Discoms are not keen on importing coal or even buying power, given the fiscal soup they are in, officials said.
The state already has 3,500 MW gas-based installed capacity lying idle, and another 2,000 MW capacity being developed by private players will be added over the next three months. Among gas-based projects awaiting allocation are Karimnagar Stage-I, Krishnapatnam Stage-II, Dr NTTPS Stage-V and Kothagudem Stage-VII. Vadarevu Stage-I, Stage-II and Stage-III are being developed, while Shankarpally gas project is awaiting allocation. AP has 97.7 MW solar power projects under various schemes. Around 26.7 MW of solar power capacity and 236 MW wind power has been commissioned so far.
Officials said the power utilities have already incurred losses worth over Rs 1,500 crore as part of Fuel Surcharge Agreement claims for 2008-09 and 2009-10 fiscals, while the regulatory body, APERC, is yet to approve another chunk of FSA claims amounting to Rs 8,000 crore. The Discoms are wary of purchasing extra power, since they never had written directions to this effect from the government, said an official. “Power was bought at high rates in the past on verbal instructions of the government,” he said. Since there is nothing in writing, in case a part of FSA claims are again turned down, the Discoms will plunge into a deeper financial crisis, the official reasoned.
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