AP revises power procurement plan

Hyderabad: The Andhra Pradesh Government and AP Transco have revised power procurement plan to meet the additional demand for 2007-2008. This would mean additional investment of Rs 2,832 crore.

As a part of this initiative, the State Government has assured the AP Transco of additional financial support complementing the Rs 1,040-crore subsidy.

Following a review meeting of the power sector, the Chief Minister, Dr Y.S. Rajasekhara Reddy, directed Transco to ensure that there is no power cut and also seven hours power supply to the farm sector operations. Factoring in the capacity additions, power deficit for 2007-08 is estimated at 4,471 million units (mu) as the demand is 66,772 mu and the availability is at about 58,301 mu.

It is contemplated to meet the deficit by additional purchase of 1,892 mu, and additional capacity utilisation through naphtha and high speed diesel, thereby, helping contribute about 1,962 mu and additional supply of 687 mu from the grid.

As a part of the State's efforts to bring in savings through the use of energy saving ISI pumpsets, the Central Power Research Institute has been engaged to study the impact of adoption of such pumpsets.

AP Transco met with an average demand of 159.7 mu per day during May 2007 against 140.6 mu per day during the corresponding period last year, reflecting an increase of 13.5 per cent. During May 2007, the demand met was 7,688 MW against 6,704 MW for the same period last year, an increase of 14.7 per cent.

According to a statement from the Chief Minister's Office, the increased demand was met with purchase of 1,050 MW, in addition to running the existing gas power stations with naphtha and overdrawing from the central generating stations.

Shortage of gas supply would now mean that about 2,000 MW from gas-based IPPs would be idle. This has forced the Government to procure high-cost power from other States and Central stations and also use high cost naphtha and high speed diesel.

The State is poised to add about 571 MW of additional power generation capacity with the commissioning of the Unit I Rayalaseema Thermal Power Plant II of 210 MW (to be ready by September 2007), and another unit of 210 MW by December 2007. This will add about 423 mu.

In addition, two units of Jurala hydel plants, each of 39 MW, would be operational by June and October, respectively. The Kaiga III of Nuclear Power Corporation is set to add about 63 MW from June.