aadwi Posted August 4, 2015 Report Posted August 4, 2015 Telangana, which managed to avert power cuts after 15 summers, is staring at such a crisis over the next few weeks as Andhra Pradesh (AP) prepares to stall power supplies from its generating stations demanding huge electricity dues. Though most power generating stations are geographically located in AP , the two Telugu-speaking states - AP and Telangana - have to share power in the ratio of 43.11% and 56.89%, respectively , a formula arrived on past usage. Carved out of AP in June 2014, Telangana needs more power than the residual AP state owing to high demand from its industrial and agricultural consumers, the latter heavily dependent on groundwater for farming. The residual AP state owns over 60% of the erstwhile combined state's power generation assets of 16,465MW (state, central and private generating stations put together) in terms of geographical location, while Telangana owns less than 40% of power assets. Honouring the consumption-based power supply formula, AP has been generating power by bearing production costs and has been supplying it to Telangana ever since the bifurcation of the erstwhile Andhra Pradesh in June 2014. Finding it difficult to supply power after Telangana failed to clear dues worth over `. 1,100 crore for months, Andhra power utilities have recently warned Telangana that power supplies will be discontinued if dues aren't cleared. Given the high costs involved in power production, AP views that it was viable to produce only to the extent of its requirements and reduced production significantly . "Telangana has to pay us about 1,124 crore and they paid about 50 crore couple of days back after we wrote to them on July 20. It will be difficult to supply power if they do not clear dues. We need to pay for coal, oil and salaries to run power stations," said AP Power Generation Corporation managing director K Vijayanand. "They still need to pay another 1,075 crore and we have even advised them to open letter of credit so that we can withdraw dues from that account," he told ET. Andhra Pradesh's decision to stall power supply could spell a setback to power deficit Telangana, whose hydel power generation has already come to a virtual standstill with its reservoirs dried up following unfavourable monsoon. India's newest state was also finding it tough to procure power from states such as Chhattisgarh even after forging power purchase agreements in view of absence of power transmission lines. Telangana is disputing the quantum of dues, said D. Prabhakar Rao, chairman and managing director of Telangana Power Generation Corporation (TS Genco) and Telangana Power Transmission Corporation (TS Transco).
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