Union Minister Calls for Telangana to Sign Power Agreement with NTPC
In response to the escalating electricity demand across Telangana, Union Minister for Coal and Mines, G Kishan Reddy, has formally requested Chief Minister A Revanth Reddy to execute a power purchase agreement (PPA) for the second phase of the thermal power project under development by NTPC at Ramagundam.
Minister's Letter Highlights Critical Energy Needs
The minister conveyed this urgent appeal in a letter addressed to the chief minister on Monday. Kishan Reddy underscored that the first phase of the ambitious 4,000 MW project, consisting of 2x800 MW units, was successfully completed and inaugurated by Prime Minister Narendra Modi in 2023.
The forthcoming second phase is designed to incorporate three additional units, collectively delivering a substantial capacity of 3x800 MW, which translates to 2,400 MW. Notably, 85% of the electricity generated from this phase is designated exclusively for consumption within Telangana, addressing the state's specific energy requirements.
Addressing Surging Demand and Grid Stability
In his correspondence, Kishan Reddy pointed to the persistent rise in electricity demand, referencing the historical peak demand of 18,139 MW recorded on March 3. This surge aligns with the state government's own assessment, which indicates a need for an additional 5,000 to 6,000 MW of thermal power to ensure future grid stability.
The NTPC project at Ramagundam is thus positioned as a critical component of Telangana's comprehensive energy strategy, essential for meeting both current and projected power needs.
Technological and Economic Advantages Emphasized
Kishan Reddy further elaborated on the benefits of the project, highlighting that NTPC utilizes advanced 'ultra super critical' technology. This innovative approach enables the production of electricity at a lower cost, enhancing affordability and efficiency.
The Union minister noted that Chief Minister Revanth Reddy had previously acknowledged the effectiveness of this initiative. He asserted that with the necessary flexibility in coal allocation, NTPC could supply high-quality electricity at an even more competitive price, delivering significant economic benefits to both the government and the public.
Urgent Call to Action Amid Regional Agreements
Kishan Reddy also referenced that other southern states have already entered into agreements with NTPC, setting a precedent for collaboration. He urged Telangana to expedite its response by signing the PPA without delay, suggesting that the chief minister take a proactive role in this vital initiative to secure the state's energy future.
This move is seen as a strategic step to bolster Telangana's power infrastructure, ensuring reliable and cost-effective electricity supply amidst growing demand and evolving energy landscapes.
