NTPC Ramagundam project: Karnataka, Punjab among the states interested in buying power

NTPC is in the process of concluding power purchase agreements for most of its 2400 MW capacity addition from Ramagundam project in Telangana.

This puts to rest any uncertainty on the progress of the phase-II of the project as there was delay on part of Telangana in signing the Power Purchase Agreement for 800 MW.

Besides, the two Telugu speaking states — Andhra Pradesh and Telangana — Karnataka and Punjab have also come forward to source power from the expanded capacity.

There were debates and discussions on whether the Telangana government will procure more than 800 MW from the project. “We have got consent of procurement of 800 MW from Telangana State. The PPA is under discussion presently with them,” the official said.

About 600 MW is being taken by Karnataka, 400 MW by Punjab and 1000 MW by Andhra Pradesh. Telangana’s loss will be others gain. Telangana was assured 85 per cent of the total 4000 MW capacity.

It may be recalled that the 4000 MW thermal power plant was assured under AP Reorganisation Act. Under phase one two units of 800 MW has been commissioned. Work for remaining 2,400 MW will be initiated once PPAs are inked.

Modalities are being discussed for the PPAs with the respective states and once the agreements are concluded it will take about two years to start the supply, a senior official told businessline.

According to the official, for thermal plants NTPC would focus on brownfield projects — capacity additions etc. and not on green field projects. Wherever, NTPC has land available it is expanding it’s thermal projects.

In Andhra Pradesh it has recently entered into an agreement to set up a joint venture for renewable project. This 50:50 joint venture is between NTPC Green Energy Limited (NGEL), a subsidiary of NTPC Limited, and New & Renewable Energy Development Corporation of Andhra Pradesh Limited, called AP NGEL Harit Amrit Ltd.