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Andhra Pradesh to buy additional power at about Rs 10/unit

According to reports, the Andhra Pradesh Government has decided to procure additional power of 1,500 MW a month during October 2012 and May 2013.

It is proposed to explore various options for purchase by spending about Rs 10 per unit, according to a statement from Energy Coordination Cell.

A decision to purchase power has been taken as the State is grappling with huge demand-supply mismatch. The State is able to generate 8,500 MW of power as against installed capacity of 15,898 MW. AP Discoms are currently supplying around 216 million units per day as against demand of about 269 mu per day.

The fall in generation is mainly due to unprecedented fuel shortage including thermal coal, natural gas supplies and inadequate water inflows into reservoirs hampering hydel power generation.

The Chief Minister, N. Kiran Kumar Reddy, on Friday approved release of Rs 600 crore for additional power purchases. Due to shortage going up 50 million units per day, the State is seeking to buy additional power.

According to preliminary estimates, the Government and utilities have estimated that the State would have supply of about 230 to 235 million units per day during the ensuing rabi season. Therefore, the utilities have been directed to prepare an action plan to provide additional supplies.

The Chairman and Managing Director of AP Transco, Hiralal Samaria, has called upon the discoms to ensure seven hours of power supply to farm sector to ensure that the kharif season passes through without any difficulty.

Consumers across sectors are faced with power cuts with industries bearing the brunt going without power for nearly 15 days in a month.

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