AP seeks preferential gas allocation to improve generation

Our Bureau Hyderabad | Updated on July 17, 2012 Published on July 17, 2012

Andhra Pradesh has sought additional preferential gas supply to improve power generation, review of the progress of ultra mega power projects and financial package for distribution companies.

The State Minister for Information Technology, Mr Ponnala Lakshmaiah, speaking at the Power Ministers’ Conference at Delhi said that to optimally use existing generation infrastructure, there is need to address supply constraints, including preferential gas supply to independent power producers.

Due to gas supply constraints, only 1,170 MW capacity is being generated as against installed capacity of 2,770 MW resulting in idle capacity of 1,600 MW. In addition, more than 2,400 MW of new gas-based capacity is ready for generation provided there is gas supply. Since Andhra Pradesh is the worst hit, he said the Centre needs to consider additional allocation to generate power and also provide more power from Central generating stations.

The cost of service in the State has increased by 34 per cent in the last three years due to shortage of domestic fuels, increased dependence on imported coal and high power prices in power exchanges. Therefore, there is need to reduce the cost taking into account the affordability and purchasing power parity.

He said work on the 4,000 MW Krishnapatnam UMPP has been suspended citing high cost of imported coal.

The Centre should set up an empowered committee to resolve the problem and ensure their timely implementation.

Coal India Ltd with a cash pile of Rs 55,000 crore should increase production and operate at lower margins.

The open access system for one MW and above benefits heavy consumers.

He urged the Centre to develop infrastructure to evacuate more power from the North to the South by strengthening the grid.

Published on July 17, 2012
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