The Hindu Business Line : Farm needs: AP to buy power for Rs 689 cr

Faced with a demand supply mismatch in the power sector due to increased consumption from farm operations and depleted generation capacity, the Andhra Pradesh Government has decided to spend about Rs 689 crore to buy power from the Central pool and other sources.

The State would clamp power cuts on domestic and industrial consumers to ensure that rabi farm operations are protected.

After a review meeting on the power scenario here on Wednesday, the Chief Minister, Dr Y.S. Rajasekhara Reddy, said the State has decided to initiate measures to ensure that farm sector operations get seven-hour supply. These include stepping up hydel generation from Srisailam project, and procuring power from Kaiga nuclear plant and West Bengal.

In addition, the State has approached the Union Power Ministry for additional supply of about 400 MW from the unallocated central pool.

Dr Reddy said the State adopted a cautious approach to hydel generation, as the water in the reservoir would be needed up to March 2007. If additional power were generated from Srisailam, the water released would go waste after the downstream Nagarjunasagar gets filled up.

Captive plants

The State is also in the process of tapping the captive plants of Vizag Steel Plant and NavBharat Ferro Alloys units and non-conventional energy, subject to necessary clearances. For December, the power purchase bill would be Rs 82 crore and this would go up to Rs 131 crore in January, Rs 235 crore for February, and Rs 241 crore in March.

Providing insight into the current situation, Dr Reddy said due to two consecutive good monsoons, the water table had gone up. This meant that the area under rabi crop increased from 22 lakh hectares to 27 lakh hectares and the number of borewells too rose from 24.5 lakh to 27 lakh.

The generation has dropped to 131 million units as against the requirement of about 163 mu due to inadequate gas supply for existing projects and lower generation from thermal units.

The State appealed to opposition parties not to politicise this sensitive issue and, in turn, educate people on the need to save energy wherever possible. He blamed the previous regime for opting for gas-based plants without ensuring adequate gas supply from ONGC and GAIL.

GAS PLANTS

While the State opted for gas-based plants, it is now faced with inadequate gas supply even for the 1,000 MW in operation now. Another 1,500 MW capacity is lying idle for want of gas.

Though ONGC and GAIL have assured additional supplies in 2007, it is uncertain when these plants would be operational. Meanwhile, the State is faced with a piquant situation under the deemed generation clause for gas plants. The State would have to pay these units Rs 1,200 crore even if they do not produce power.

The Government has negotiated and arrived at an agreement against the payment. Two projects have signed up and two more are underway, Dr Reddy explained.

Meanwhile, the State is also considering the possibility of generating power using naphtha. However, this could be the last option, as it is costlier than purchasing power.

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