Telangana makes rapid strides in power sector .....CM KCR Statement in TS Assembly

Telangana makes rapid strides 
in power sector

CM KCR Statement in TS Assembly

04-01-2017

I am happy to inform the August house that today, the fourth January 2017, our Government and TS Discoms are executing a MoU with Government of India at New Delhi, to join in UDAY Scheme.

Telangana State has made rapid strides in the power sector. It could overcome hurdles, problems created in this part of erstwhile AP in the power sector due to the biased and partisan power policies being implemented under the United Andhra Pradesh Government.

There was a severe power crisis in the region, when the Telangana State was formed. People were subjected to untold misery due to hours together power cuts. The industrial growth took a beating due to power holidays. The farm sector was also subjected to a lot of problems, as power supply was not adequate. When we took reigns of the State, power crisis became the single most challenge to us. When the Telangana State was formed, the power deficit was to the tune of 2,700 MW.

On the other hand, the two DISCOMs in the state were in a deep financial crisis with Rs 11,897 Crore debt. The root for the problem lay centred in the wrong policies being implemented under the United AP regime. The power policies of then regime had no direction or planning to meet the ever-increasing demand for generation and supply of power. This had directly resulted in people to take streets demanding the power supply. When people and farmers agitated for the supply of quality power and reduction in the power tariff, in Basheerbagh in the city, the then government had resorted to unprovoked lathi charge and firing which led to the killing of two farmers. This became a black spot and blemish on the then United AP regime. Against this atrocious incident the Telangana movement had surged ahead. The people’s movement for Telangana had its tremendous successes and a separate Telangana State was formed. The moment we came to power, we have focussed on the power crisis.

We have prepared the long term, medium term and short term plans to increase the power generation capacity. Initially we have concentrated more on increasing the capital generation. We have reduced the losses in supply and distribution from 16.83 per cent to 15.98 per cent. We have increased the generation capacity of Genco many fold. We have made short-term power purchase agreements.

We have expedited the process of setting up of power plants, which were at a snail’s speed.  Through these measures, 600 MW from Bhoopalpally KTPP, 1200 MW from Jaipur Singareni plant, 840 MWs from Thermal Power Tech, 550 MW from Central Generating Systems (CGS), 240 MW from Jurala Hydro Power Project, 30 MW from Pulichintala, 1080 MW Solar power, 99 MW wind power was added.  In all in the short span of two years, we have brought in an additional 5039 MW was brought into availability to the existing 5863 MW Capacity registered as on June 2, 2014. As on date, in the Telangana state, the generation capacity is to the tune of 10,902 MW. However, a point is to be clarified here. Of the 10,902 MW power generations, 3531 MW come from the Hydel, Solar and wind energy. But these three forms of power generation are not reliable. In other words, though the capacity is of the order of 10,902 MW, in effect it is only 7371 MW that is steadily available. As on date, the maximum demand is for 8284 MW in the State.

This would mean, there is still a gap of little over 1000 MW between the demand and supply in the State. My government is providing quality power without any interruption in the State. From Nov 20, 2014, six months after the formation of the State, people were given power supply without any cuts. We are supplying power 24 hours for the industry, domestic and commercial sectors.  For the farm sector, we are supplying three-phase power for nine hours. All the consumers are happy that the Power sector was revitalized and quality of power is being supplied. The use of captive generators reduced and invertors replaced with investors in the State.

Appreciating the good work done by the Power department, institutions like REC, PFC have decreased the interest rates from 12 per cent to 9.95 per cent. This has directly resulted in Power plants getting a benefit of Rs 2000 Crore.

In the days to come, we will make the State self-sufficient in power generation and make it a power surplus State by increasing the generation capacity multi-fold. We are going forward with an objective to make the new Yadadri, Bhadradri, and Kothagudem plants to generate about 5880 MW. Under the AP Bifurcation Act, NTPC is setting up power plants to generate 4000 MW in Ramagundam.  Recently, Prime Minister Sri Narendra Modi laid foundation stone to the first phase of 1600 MW plant. In the next three years, through CGS, we will get 595 MW. Singareni is setting up another plant at Jaipur with a capacity of 800 MW. In the next three to four months, we will be getting 1000 MW from Chattisgarh State. In addition to this, 3920 MW Solar Power will be added by 2017-18. Another 90 MW will be added from Pulichintala Hydel Power plant. With all this, by 2019, the State will have to a tune of 27187 MW power generation capacities. By then, the State will not only be self-sufficient to meet its power demands but will also be able to generate an additional power over and above our requirement.

The State is making another landmark step to better the power sector and strengthen the DISCOMs. I am happy to inform this August House that today, our government is signing a MoU with the centre to join under the Uday scheme. Due to the faulty policies of the previous regimes, the DISCOMs pushed in the debt to the tune of Rs 11,897 Crore. TSSPDCL has Rs 7392 Crore while TSNPDCL has Rs 4505 Core debt. By joining the Uday Scheme, 75 per cent of these debts that is Rs 8923 Crore will be borne by the State government and the rest Rs 2974 Crore would be given as bonds by the DISCOMs with the State’s guarantee. As a result, the DISCOM s will be come debt free. Since the government is servicing the debts, DISCOMs need not pay Rs 890 Crore towards interests and they will be able to raise fresh loans. This year, the State government is giving Rs 4584 Crore as Subsidy to the DISCOMs. This will greatly benefit the end consumer.

Power Sector in the State could make these rapid strides, thanks to the contributions made by employees working in various wings of electricity department. Among these employees, the State government has taken a sympathetic view on those working on Outsourcing basis. Hence, the government decided to regularise about 20,000 outsourcing employees in the department. About 1175 Contract JLMs have already been regularized. Besides regularising the Oursourcing employees, job security and better salaries will be paid to them.

I am making a humble submission on the floor of this House that uninterrupted and quality power will be supplied in the state and we will make this state, self sufficient and surplus in the power generation. I will also assure this House that we will bring in light among the people’s lives with assured and uninterrupted power supply with quality in the State.