Telangana powersector discrimination

Exploitation, Discrimination and Neglect ofPower Sector in Telangana Region

In the Combined State of Andhra Pradesh

ByK.RaghuCoordinator

Telangana Electricity Employees Joint Action Committee (TEEJAC)

1 Power Sector in Telangana

2 Employment in Telangana

3 Telangana Power Sector – Myths & Realities

5 Suggestions for Building Telangana Power Sector

4 Present Power Crisis- Discrimination of Telangana

Agenda

History of Telangana Power Sector

Hyderabad State Electricity Department (HSED) was

established in 1910.

Madras State Electricity Department (MSED) was

established in 1927.

Andhra State Electricity Department (ASED) was

established in 1953 with the formation of Andhra State.

Andhra Pradesh Electricity Department (APED) was

established in 1956 after the formation of Andhra Pradesh.

APSEB was established in 1959.

History of Telangana Power Sector

APSEB was unbundled into APGENCO, APTRANSCO and

4 Distribution companies (APEPDCL, APSPDCL, APCPDCL

and APNPDCL) after 1999.

APCPDCL and APNPDCL serve Telangana Region

(including Anantapur and Kurnool).

APEPDCL and APSPDCL serve Andhra/Rayalaseema

Regions.

Injustice in Power Sector Development in Telangana

Telangana region is endowed with abundant natural

resources like water and coal which are essential for the

development of Power Sector.

However most of these resources have been diverted for

the development of other regions of Andhra Pradesh.

This led to underdevelopment of power production

infrastructure, and loss of employment opportunities in

Telangana.

Installed Generating Capacity in APSector Telangana Seemandhra

Present Capacity

State Sector (APGENCO) 4825.26 4099.60

Central Sector (NTPC, NLC, NPCIL) 846.83 2268.91

Private Sector 152.00 3649.60

Sub Total 5824.09 10018.11

Projects under Construction

State Sector (APGENCO, SCCL) 6060.00 13392.00



Sub Total 6660.00 16152.88

Total Capacity

State Sector (APGENCO, SCCL) 10885.26 17491.60



Grand Total 12484.09 26170.99

Telangana 37%

Seemandhra 63%

Telangana 27%

Seemandhra 73%

Telangana 31%

Seemandhra 69%

Total State

APGENCO Projects Under Construction & Under Development (MW)Station Telangana Seemandhra

Rayalaseema TPP Stg-IV 600.00

Kakatiya TPP Stg-II 600.00

SDSTPS Krishnapatnam Stg-I 1600.00

IGCC Plant at Vijayawada 182.00

Mega Thermal Power Project at Vadarevu 4000.00

Sattupally TPS 600.00

Thermal Power Project at Srikakulam 2400.00

Nuclear Power Plant at Pulivendula 2000.00

Gas based Power Project at Karimnagar 2100.00

Gas based Power Project at Shankarapalli 1000.00

SDSTPS Krishnapatnam Stg-II 800.00

Dr.Narla Tatarao TPS Vijayawada Stg-V 800.00

Kothagudem Stg-VII 800.00

Total Thermal 5100.00 12382.00

Lower J urala HEP 240.00

NS Tailpond dam PH 50.00

Pulichintala HEP 120.00

Polavaram HES 960.00

Total Hydro 360.00 1010.00

Total APGENCO 5460.00 13392.00

Telangana 29%

Seemandhra 71%

The Total Power Demand in Telangana region is around

56%-60% of the total demand in Andhra Pradesh, where as

the installed capacity in this region is only 37%.

If installed capacity on account of ‘infirm’ Hydel stations is

ignored, installed capacity in Telangana region is only 17% of

the total installed capacity of AP.

Injustice in Power Sector Development in Telangana

Reasons for Under Development

Diversion of Projects from Telangana Region.

Not Taking up of Several Projects in Telangana Region.

Neglect of Telangana Power Sector.

Diversion of Projects from Telangana Region

Shifting of Manuguru (Bhadrachalam) Power Project from

Manuguru to Vijayawada.

Construction of Rayalaseema Thermal Power Plant

(RTPP).

Handing over of Super Thermal Power Plant in

Ramagundam, Karimnagar to NTPC.

Financial Burden due to handing over of VTPS & Rayalaseema Thermal Power Project (RTPP).

Station Variable Rate (Rs./kWh)

VTPS (I,II,III) 1.56

VTPS –IV 1.40

RTPP-I 2.03

RTPP-II 2.03

RTPP-III 2.03

KTPS (A,B,C) 1.31

KTPS - D, VI 1.13

RTS - B 1.61

KAKATIYA - I 1.16

38% Excess

80% Excess

ARR Filings of APCPDCL 2010-11


S.No. Station Name FY 2010-11

1 VTPS - I, II,III 8724.09

2 VTPS - IV 3547.56

3 RTPP-I 2825.86

4 RTPP-II 2970.37

5 RTPP-III 230


AP GENCO Thermal Energy Availability (Mus)


Additional Burden on Consumers due to shifting of Plants from Telangana Region

Plant Energy(mu) Excess Rate(Rs/unit)

Addl. Burden (Rs. Cr)

VTPS 12271 0.43 527.65

RTPP 6025 0.9 542.25

Total 1069.9

Projects not taken up in Telangana Region

Erstwhile APSEB had conducted detailed site investigations

and identified several locations in Telangana region suitable

for setting up power plants.

Many of these locations were identified long back 1966-67.

Successive governments have neglected construction of

these projects and preferred to concentrate on Andhra region

The reasons for not taking up these Projects were never

stated any where.

Projects not taken up inTelangana RegionS.No. Name of the Project Location District Capacity Ref. (APSEB

Adm. Report)

1 Kuntala Hydro Electric Scheme Across river Kadam Adilabad 24 MW 1966 - 67

2 Pranahita Hydro Electric Scheme Across river Pranahita, a tributary of Godavari Adilabad 280 MW 1966 - 67

3 Inchampally Hydro Electric Scheme Across river Godavari Karimnagar 600 MW 1966 - 67

4 Singareddy Hydro Electric Scheme, Dummagudem Across river Godavari Warangal 192 MW 1966 - 67

5 Dindi Hydro Electric Scheme On North East Canal of the Project Nalgonda 21 MW 1966 - 67

6 Sankarpalli Gas Power Station Sankarpalli Ranga Reddy 1400 MW 2000 - 01

7 Karimnagar Gas Power Station Nedunuru Karimnagar 2100 MW 2004 - 05

8 Sattupalli Thermal Power Station Sattupalli Khammam 600 MW

10 Thermal Power Project (BPL) Ramagundam Karimnagar 520 MW

Total 5737 MW

Neglect of Telangana Power Sector

Delay in Construction of Sagar Tail Pond Dam.

Kinnerasani waters to Dhavaleshwaram.

Telangana Power Sector Lands to Andhra Capitalists.

Neglect of Telangana Region in various electrification

schemes taken up by Central Government.

Neglect of Telangana Power Sector

Abnormal Delays in

Construction of Sub-Stations for Lift Irrigation Projects.

Implementation of High Voltage Distribution System (HVDS).

Indiramma Programme.

Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) programme.

Neglect in Setting Up Departmental Stores, Hot lines Sub-Divisions in

APTRANSCO.

Execution of works- Regionwise representation of contractors

Electrification Schemes

Lift Irrigation Projects

Telangana Lift Irrigation Schemes

Mahaboobnagar LISs Karimnagar LISs

5 schemes 6 EHT substations

Not done by APTRANSCO, handed over to Irrigation dept

Taken up in 2007, only one Substation Commissioned

Started in 2005, not even a single project completed Only tendering completed for balance substations

Problems with terminal arrangements for 3 schemesBudget: Rs 106 cr released out of total of Rs 189 cr

Budget: Rs 16 cr released out of total Rs 159 cr


Andhra Lift Irrigation Schemes

Kurnool, Anantapur Kadapa LISs

10 Sub-Stations 6 EHT substations

Work commenced in 2007 Taken up in 2007

All commissioned3 substations and lines commissioned, others are nearing completion.

Budget: Rs 360 cr released out of total Rs 367cr at a time

Budget: Rs 200 cr released out of total of Rs 200 cr at a time


Andhra Lift Irrigation Schemes

Kurnool Chittoor

HNSS extension Scheme at Muchumarri HNSS Phase-2

Scheme formulated in March/2012 Scheme formulated in March 2012

Budget Rs 60.15 cr released.Entire Budget Rs 192.00 Cr released.

HVDS Scheme

Implementation of HVDS to Agricultural Pump Sets

12.73%33.85% 26.9%73.1%

RegionNo. of Agricultural

Services as on 31.03.20009

HVDS Implemented

Services%

Expenditure Incurred (Rs. In

Crores)%

Andhra 1114114 377117 33.8 1310.55 73.1Telangana 1566557 199413 12.7 483.61 26.9

Total 2680671 576530 1794.16

Indiramma SchemeGovernment of Andhra Pradesh has launched “Indiramma” (Integrated Novel Development in Rural Areas and Model Municipal Areas) scheme from 1st April 2006

Region Rural Urban Total %

Andhra 1327141 143563 1470704 76.1Telangana 437413 22579 459992 23.9

Total 1764554 166142 1930696

23.9%76.1%

No.of connections

RGGVY SchemeRajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) programme:

Region Funds Released Rs. In Crs %

Andhra 329.20 70.5Telangana 138.39 29.5

Total 467.59

29.5%70.5%

Departmental Stores

Neglect in setting up of Departmental Stores & Hotline Sub-Divisions

With 13 Districts in Andhra region have 7 departmental stores and 7 Hotline

Sub-divisions.

With 10 Districts in Telangana region have only 1 departmental store (created 50

years ago) and 2 Hotline Sub-Divisions

Story of APCPDCL

APSEB was unbundled into APGENCO, APTRANSCO and Four Distribution Companies on 01-02-1999 as a result of enactment of Andhra Pradesh Electricity Reform Act 1998.

Originally it was contemplated to have only Telangana districts in APCPDCL

Later, two Andhra districts, Anantapur and Kurnool were included in APCPDCL.

This made APCPDCL unwieldy and half of the states electricity demand (46%) comes from APCPDCL while other 3 discoms contributing only 54%.

Story of APCPDCL

This was done with the intention of paving way for Andhra People to enter key administrative and managerial positions.

As expected almost all the directors and Chairmen of APCPDCL appointed since the formation of the company belonged to Andhra region.

Only recently, when the demand for Telangana reached its pinnacle, Andhra rulers tried to assuage the feelings of Telangana people by appointing two directors from Telangana region in the month of January, 2010.

Story of APCPDCL

This has also allowed many employees from Andhra region find their way to Hyderabad pushing aside the employees of Telangana region.

The larger size of APCPDCL has resulted in many problems for the consumers of the Company in terms of quality of service.

The spirit of reform process was thrown to winds by Andhra rulers for their insatiable greed for power.

Execution of Works

APSEB and its successor entities dominated by Andhra people have encouraged contractors of their region through various means.

Obviously majority of registered contractors with power utilities belong to Andhra region.

For example, in APTRANSCO, out of 30 registered contractors 25 belong to Andhra region and only 5 contractors belong to Telangana region.




5 Power Sector Development with Separate Telangana

4 Samaikyandhra Slogan Profits the Capitalist s

Agenda

Employment in Telangana

Power sector creates ample Employment in various segments ie Generation, Transmission and Distribution.

Each major generating station requires thousands of employees and corresponding transmission and distribution networks require even more number of employees.

Decisions of the government in creation of power infrastructure play very important role in creation of employment to various regions.


Chairmen from 1974-1999

Telangana Andhra Telangana %

Duration in Days 0 7294 0

No. of Chairmen 0 4 0

Appointments of Chairmen in Power Sector

Chairmen from 1959-1999

Telangana Andhra Telangana %

Duration in Days 730 10952 6.2

No. of Chairmen 2 7 22.2

Employment in TelanganaAppointments of Board of Directors in Power Sector

Board Members of APSEB during 1959-1999

Region Telangana Andhra Telangana %

Duration in Days 11379 70077 14

No. of Board Members 16 89 15.2

Board Members of APSEB during 1974-1999

Region Telangana Andhra Telangana %

Duration in Days 5116 31981 13.8

No. of Board Members 7 54 11.5

Employment in TelanganaAppointments of Board of Directors in Power Sector

Region wise Duration of Directors in Days (1999-2010)

Telangana Andhra Telangana % Jurisdiction of Company

GENCO 5831 16002 26.7 Entire AP

TRANSCO 5817 17161 25.3 Entire AP

NPDCL 7246 8566 45.8 Telangana

CPDCL 5145 15510 24.9 85% Telangana

SPDCL 546 22344 2.4 Andhra

EPDCL 82 10366 0.8 Andhra

Overall 24667 89949 21.5 --


Telangana youth have lost thousands of jobs in power sector mainly due to three reasons

Firstly, diversion of projects from Telangana region to Andhra region.

Secondly, non-execution of potential generation projects in Telangana region as planned.

Thirdly, non implementation of Presidential order for 3 ½ decades.

Loss of Jobs to Telangana Youth

Diversion of Projects

Loss of jobs due to diversion of Generation Plants from Telangana region to other regions

Telangana Quota in % as per Presidential Order 60% 70% 80%

Category of Posts Executive Posts Non-Executive Posts O&M Posts Total

VTPS 874 544 1421 2839

RTPP 509 275 805 1589

Total Posts 1383 819 2226 4428

Reserved Quota for Telangana 829.8 573.3 1780.8 3183.9

50 % of open quota 276.6 122.85 222.6 622.05

Total posts lost by Telangana 1106.4 696.15 2003.4 3806

The total number of posts lost by Telangana region by diversion of projects is 3806 excluding NTPC Ramagundam plant.

A rough estimate of posts lost due to transfer of RTS to NTPS for Telangana is about 3000. (It is understood that only 150 class IV employees work in NTPC, Ramagundam TPP).

Total posts lost due to diversion of projects 3806+3000=6806


Loss of Employment

Total posts lost due to not taking up of projects

Capacity lost: 6337MW

Posts lost: 7145 No.s

Assuming 0.8 nos. per MW for Hydel Stations and 1 person per MW for Gas based power plant, 1.6 person per MW for Thermal based power plant.


Loss of Employment

Non-implementation of Presidential order in APSEB and its Successor entities

What is presidential order?

Certain safeguards in employment were given to the people of backward region of Telangana, so that they can survive and get their rightful share in employment.

Supreme court on 16-10-1972 held that Mulki rules are constitutional.

The Andhra leaders never wanted any special protection to be given to the people of Telangana in spite of their solemn assurance given in Andhra assembly.

The violent agitation that followed in Andhra forced the Prime Minister to declare Six Point formula which resulted in rendering the continuance of Mulki rules redundant.


As a result of Six point formula Presidential order was issued in 1975.

It was never implemented in erstwhile APSEB.

Even the successor entities of APSEB were reluctant to implement the Presidential order.

However pressure from the movement for Telangana state forced the power utilities to implement Presidential order from the year 2009 onwards, but in a limited way, that too with so many distortions. Non implementation of Presidential Order for 34 years has resulted in loss of many of jobs to Telangana youth.


Before Presidential order implimentation (APCPDCL)

Year AE’s Recruited Tealangana Andhra

2003-04 80 22 58

2004-05 112 46 66

2005-06 84 29 55

2006-07 232 104 128

2007-08 71 37 34

2008-09 61 31 30

Total 640 269(42%) 371(58%)


After Presidential order implimentation

Year AE’s Recruited Tealangana Andhra

2009-10 48 38(79%) 10(21%)


Loss of AE Elec posts in APCPDCL 2003-2009 = 640*(0.79-0.42)

=237

Estimation of total loss of jobs in power sector (Other than workmen)

=13620*0.56*(0.79-0.42)=2822

Total Loss of Employment for Telangana Region

Total cadre strength in AP Power Sector is 78000

Percentage of loss to Telangana Region is 21.5%

Loss of Employment No of posts

Diversion of projects 6806

Not taking of projects 7145

Non implementation of Presidential order 2822Total posts 16773



5 Power Sector Development with Separate Telangana

4 Samaikyandhra Slogan Profits the Capitalist s

Agenda


Telangana Power Sector – Myths & Relalities

Andhra Rulers have systematically exploited, discriminated and neglected Telangana power sector.

On the other hand started spreading wrong information that Telanagana region is the major beneficiary due to the formation of combined state of Andhra Pradesh.

Protagonists of “Samaikyandhra” mainly focus on (i) Tariff Subsidies/Agriculture consumption and (ii) Percapita consumption (iii) Investments (iv) Development of Hyderabad City in support of their argument, which are totally baseless.

AgendaTelangana Power Sector – Myths & Relalities

Subsidy figures quoted by GoAP are misleading and misrepresentation of facts.

Subsidies to Telangana Power Sector

Shift from Differential Bulk Supply Tariff (D-BST) to Uniform Bulk Supply Tariff (U-BST)

APTRANSCO was the bulk supplier of electricity to DISCOMS prior to 2000.

APTRANSCO followed the system of D-BST to DISCOMS based on consumer mix.

As per Electricity Act 2003, trading was separated from APTRANSCO on 09-06-2005.

This resulted in adoption of U-BST.



Allocation of Generating Capacities among DISCOMS



Differencial BST Vs Uniform BST for DISCOMS

DISCOM D-BST IN 2005-06If Average BST is

allowed%Excess/Less

CPDCL 2.13 1.97 -7.5

EPDCL 2.31 1.97 -14.71

SPDCL 1.79 1.97 +10.05

NPDCL 1.5 1.97 +31.33


Transfer of Expensive Power from Andhra Regions to Telangana Region

If it was decided not to consider consumer mix while deciding power purchase price of DISCOMS, it would have been logical to consider the location of generating plants for allocation of PPAs.

Generating plants with cheaper generating costs are located in Telangana region, and costly private and non-conventional plants are located in Andhra region.

Transfer of burden of costly power plants on Telangana region increased power purchase costs for this region and this allowed government to artificially show higher subsidy to Telangana region.


Average Power Generation Costs From Telangana and Andhra Regions

RegionAverage Power

Purchase Cost (Rs/Unit)

Telangana 1.83Andhra 2.38


Over estimation of Agricultural power Consumption

The agricultural consumption projected by the utilities in Telangana region is on higher side and this is resulting in higher subsidy figures for Telangana region.

o Non-deletion of dysfunctional Pumpsets o Artificial Lowering of T&D Loss Figures

Total power consumption = Metered consumption + unmetered consumption + Transmission and

Distribution (T&D) losses

Telangana Power Sector – Myths & RelalitiesAgricultural consumption and T&D losses in APCPDCL

DistrictNo. of Agricultural connections as on

30-03-2009

% of Agricultural Consumption

Total T&D losses(%)

Anantapur 159549 5.87 14.42Kurnool 90026 3.31 16.27Mahaboobnagar 182628 6.72 18.74Nalgonda 235129 8.65 14.86Medak 179430 6.6 14.97Rangareddy 101396 3.73 13.83

1003 0.04 20.9

Total 949161 16.35

o It is clear from the above illustrations that the actual agricultural consumption is very less when compared to the figures projected by the Discoms .

o Thus the actual subsidy required for agricultural sector is significantly less. Utilities have to improve their performance to reduce the T&D losses.


DISCOM wise Agriculture Connected Load Vs Agricultural Consumption

RegionConnected

Load (KVA)

Connected Load % of Total Load

Agricultural Consumptio

n

% Agl. Consumptio

nRemarks

Andhra 4854534 47.12 5838 41.4 Anantapur &Kurnool including

Telangana 5447415 52.87 8230 58.6 Anantapur & Kurnool deducted

Total 10301949 100 14068 100


If Consumption in Andhra region is taken as the basis, the % consumption in Telangana region should be around 46.45% instead of 58.60% shown by the Discoms.

And thus Consumption in Telangana region should be around 6535 mu and not 8230 mu shown. Thus the actual ‘subsidy’ required is lower than what is projected by the Discoms


Myths About Per Capita Consumption in Telangana

Per capita consumption of electricity of

AP is 746 units and

Telangana region comprising of APCPDCL and APNPDCL PCC is 932 and 639 respectively,

Andhra region consisting of APEPDCL and APSPDCL per capita consumption is 506units and 542 units respectively.

Based on this some people argue that PCC of electricity in Telangana region is high.

But this is not true and misleading.


Per Capita Consumption of Electricity for Domestic Sector in Telangana

Name of District in Telangana Region

PCC of Domestic sector

State Average% Excess / Less in comparison with

State Average

Mahbubnagar 45 126 -64.29Nalgonda 73 126 -42.06Medak 89 126 -29.37Warangal 107 126 -15.08Karimnagar 110 126 -12.7Khammam 119 126 -5.56Nizamabad 111 126 -11.9Adilabad 93 126 -26.19


Per Capita Consumption of Electricity for Domestic Sector in Telangana

%PCC of Domestic

sector

Average PCC of Domestic Sector in AP (Excluding Hyderabad

and Rangareddy)

% Excess or Less

Andhra 142 128 +10.9

Telangana (excluding Hyderabad and Ranga Reddy)

93 128 -27.3

Andhra PCC is 52.6% more than the Telangana PCC


Myths about Huge Investments in Telangana Region

GoAP projects that huge investments are made in Telangana region compared to Andhra region.

This statement is also misleading and false.

Most of the investments that are made in Telangana are only to benefit Andhra region.


Construction of Srisailam project

Though the project was constructed as purely for the purpose of power generation, now most of its waters are diverted to Rayalaseema region through Pothireddy padu head regulator. oAP projects that huge investments are made in Telangana region compared to Andhra region.

It has zero value for Telangana region.

But most of the investments are shown in Telangana region.


Srisailam left Bank Power House

900 MW SLBHES was taken up in early 1990s at an estimated cost of Rs 400 crores

Negligence and vested interests on the part of Andhra rulers and contractors has delayed the project and the cost of the project escalated to Rs 4000 crore.

CAG made adverse remarks on the negligence and irregularities that took place in this project But most of the investments are shown in Telangana region.

Telangana has no specific advantage with this project.

However entire investments are shown in Telangana region.

Telangana Power Sector – Myths & RelalitiesConstruction of Nagarjuna Sagar project

Most of the investments in Nagarjuna sagar project are shown under Telangana region.

But this project is so located to give entire advantage to Andhra region only.

Originally during Nizams period it was planned to construct this project at Nandikonda, about 20 KM u/s of current location. This would have given huge advantage to Telangana districts.

But Andhra rulers have intelligently shifted this project down stream, to take maximum advantage of the project.

Large areas of Telangana were inundated and it lost its heritage (several Buddist land marks got submerged).


Construction of Pulichintala project

Construction of Pulichintala project is taken up against the wishes and protests of Telangana people .

This project basically serves the irrigation needs of Andhra people.

Construction of Pulichintala project is resulting in submergence of thousands of acres of irrigated lands in Telangana region.

It is also resulting in submergence of rich mineral wealth (granites, lime stone etc,.) in Telangana region.

However as the project is located in Nalgonda district (Telangana), entire investments are shown under this region.


Water Supply projects in Nalgonda (Telangana) district

Government of AP has taken up water supply projects in Nalgonda district to meet the drinking water needs of Hyderabad, where people from all regions, mostly from Andhra reside.

However investments are shown as made in Nalgonda district.

Also huge power consumption in Nalgonda district under pumping schemes are shown under Nalgonda district.

Telangana Power Sector – Myths & RelalitiesKinnerasani

Diversion pipe line From Godavari to Kinnerasani:

Andhra rulers have violated all norms in taking away Kinnerasani waters to Dhavaleshwaram for giving waters to third crop in Krish delta.This has created water shortage for Kothagudem TPS.

In the month of March’2010 certain units of KTPS were shutdown for want of water. Alarmed by this APGENCO is laying pipe line to divert water from Godavari to Kinnerasani.

This will only pave way for indiscriminate theft of water from Kinnerasani to Dhavaleswaram.

About Rs 130 crores are spent on this pipeline work. This entire amount is shown as investments in Telangana


Singur

Entire waters from Singur are utilised for Hyderabad

Investments and power consumption for pumping the water are shown in Medak district


Construction of Dummugudem-Sagar Tail pond diversion project:

– This project is taken up primarily to divert waters from Godavari delta to Krishna delta.

– Water will be diverted from proposed Dummugudem dam through lifts upto Nagarjuna sagar tail pond.

– These waters will be pumped into Sagar main dam using reversible turbines of Sagar hydro project.

– This water will be used to meet the irrigation requirements of existing Sagar ayacut.

– This will facilitate diversion of Krishna waters to Rayalaseema region from Srisailam dam through Pothireddypadu head requlator.

– However entire investments under this scheme are shown under Telangana region.

BENEFITS TO ANDHRA

INVESTMENTS IN TELANGANA

Don’t worry… all investments are made in Telangana only…

ANDHRA

TELANGANA






Agenda


Demand Vs Allocation of Power to DISCOMS

Discom Share of Power

CPDCL 46.06%SPDCL 22.27%NPDCL 15.87%EPDCL 15.80%


The above allocations were made at the time of transfer of trading

functions from Transco to Discoms in June, 2005 based on power

demand in 2004 in each Discom.

The state of Andhra Pradesh had witnessed severe drought from

2000 to 2004.

Since the power demand in Telangana region is mostly governed

by demand from Agriculture sector, the demand was less in

Telangana region during 2004.


This resulted in lesser allocation of power to Telangana region.

No significant modifications were made after that. (NPDCL

allocation was further reduced once).

This is the reason for higher power cuts in CPDCL and NPDCL

(Telangana region) compared to other two Discoms.


The problem is compounded by the following reasons:

For CPDCL region, the power demand for Hyderabad (GHMC area) is much higher and power cuts imposed are nominal compared to other districts.

This is forcing CPDCL to divert power from other districts to Hyderabad from its allocated share of power, resulting in lesser availability of power for other districts.

On the other hand, NPDCL is concentrating more on increasing revenue from trading of available power to other regions.


Details of Power Traded by Discoms:

DISCOM Power Purchase Cost (Rs cr)

Revenue from Trading (Rs cr)

% of traded power

CPDCL 12897 327 2.5

EPDCL 4816 51 1.1

NPDCL 4162 583 14

SPDCL 6728 69 1

Total 28603 1030 3.6


It can be seen that 14% of power purchased is traded by NPDCL.

This could be much higher in terms of energy traded.

It is surprising that while maximum power cuts are imposed in

NPDCL region, the traded power by NPDCL is also maximum among

all the Discoms.

The practice of differential Bulk Supply Tariff (D-BST), which takes

into account consumer mix of each Discom, for sale of power by

Transco to Discoms was removed from 2005.

This has resulted in huge revenue gap for NPDCL which has poor

industrial base, forcing it to adopt this unfair practice to bridge revenue

gap, at the expense of consumers of that region


Power Drawals (Excess/Less) recent

Date APEPDCL APSPDCL APCPDCL APNPDCL

4th July 1.98 7.79 2.51 -2.6

5th July 2.13 6.04 2.63 -2.01

6th July 0.76 6.03 -0.02 -3.8

7th July 0.56 5.85 -1.44 -4.52


Suggested allocations to CPDCL & NPDCL (taking into consideration unrestricted demand, GHMC requirements, consumer mix, lifting of D-BST etc,.)

Discom Share of Power

CPDCL 0.5

NPDCL 0.2





Agenda

1 Power Sector in Telangan

Kakatiya Thermal Power ProjectKakatiya Thermal Power Project Site selected on the basis of (1) Proximity to coal source (2) Low fuel transportation cost (3) Availability of uninhabited land at reasonable cost.

Unit 1 (500 MW) is already in operation.

Unit 2 (600 MW) is under construction; expected by December, 2013.

As allocated KTK-8 mines (4400 GCV) were not ready, SCCL is providing coal from KTK3-OC mines & others. Instead of conveyor system, coal is being transported by road causing (1) damage to roads (2) pollution en-route (3) less quality coal.

APGENCO has to pursue with SCCL for development of KTK-8 mines and also should take up development of Tadicherla coal mines immediately.

It was already envisaged to establish a rail link from the nearest railway station (Bisugir-sharif) along with the related coal handling equipment to cater the needs of both stages. But no forward action is taking place.

Further 3x800 MW units may be established here as abundant coal and land are available. Water can be drawn from River Godavari.

Sattupalli Thermal Power ProjectSattupalli Thermal Power Project 1x600 MW unit is proposed near Sattupalli mines.

Land already identified but there are no serious efforts for land allocation either by GoAP or APGENCO.

GoAP allocated water from River Godavari.

Even though the location is near coal mines APGENCO shelved the project stating non availability of coal linkage and land allottment.

APGENCO should immediately take up this project and SCCL may be approached for supply of coal.

APGENCO should coordinate with SCCL and SCR to establish a rail link to Sattupalli from the Khammam-Vijayawada railway line. But no action so far.

Atleast one more 600 MW unit should be included in planning stage and may be established in second phase.

Ramagundam Thermal StationRamagundam Thermal Station

One 62.5 MW unit is working over the past 40 years since 1971.

Two 600 MW Units can be constructed by utilizing the available vacant land and decommissioning the 41 year old 62.5 MW unit.

As BPL is not furthering construction of 600 MW unit, the project including land may be transferred to APGENCO.

Coal can easily be made available as Ramagundam is near to so many SCCL mines.

It is well connected to railway line and water can be drawn from Yellampalli.

Callous attitude of APGENCO in exploring this project must be represented.

By taking up 2x600 MW in existing land and 1x600 MW from BPL, the total station capacity of 1800 MW can be established.

Thermal Stations in Nizamabad and MahaboobnagarThermal Stations in Nizamabad and Mahaboobnagar There are no thermal power stations in these districts.

Two 600 MW Units can be established elsewhere in Nizamabad district along the railway line.

Water can be sourced either from Nizamsagar or Sriramsagar.

Coal linkage to Parli thermal power station from SCCL can be diverted to Nizamabad thermal station by making alternative coal linkage to Parli TPS either from Western or Central coal fields of Coal India Ltd.

GoAP gave approval for establishment of thermal power station in Mahaboobnagar district to a private company. But no activity is taking place.

Land and water sanctions may be diverted to APGENCO and GoAP may authorise APGENCO to establish 2x600 MW power project.

By taking up 2x600 MW projects in these two districts will improve quanity and quality of power, thus development of the local region.

Karimnagar Gas based Power ProjectKarimnagar Gas based Power Project Foundation stone laid for Stage-I (700 MW) in February, 2010. No activity since then.

Tenders are being postponed stating non availability of gas linkage.

APPDCL initiated Krishnapatnam-I and Karimnagar projects simultaneously in 2007. Krishnapatnam-I (2x800 MW) is already under construction and Krishnapatnam-II (1x800 MW) is about to start. But GoAP / APGENCO is not showing any interest for Karimnagar project.

Project may be taken up with RLNG immediately as all allocations and clearances are in place.

GoAP may be pressed to address GoI for allocation of 9.72 MMSCMD gas for 2100 MW Karimnagar power project.

As per Tata Consultancy Services drawings, the land at Nedunur is sufficient for establishment of 5x700 MW but the ultimate capacity of 3500 MW is not being made public by APPDCL / APGENCO.

Shankarapally Gas based Power ProjectShankarapally Gas based Power Project

1000 MW Shankarapally gas based power project is proposed to meet the power requirements of Hyderabad Metropolitan area and Metro Rail Project.

Land already available.

Water can be made available either from Singur or from Chevella reservoir.

Project may be taken up with RLNG immediately.

GoAP may be pressed to address GoI for allocation of 4.62 MMSCMD gas for this power project.

If delayed any further, it will be difficult for APGENCO to continue to possess the land.

Kanthanapally ProjectKanthanapally Project

This Project is proposed across River Godavari.

It will facilitate good water management in Karimnagar/ Warangal/Khammam.

By properly adjusting the height of dam 450 MW can be generated.

Cheap hydel power generated may be utilised for many lift irrigation schemes.

GoAP may be pressed to give necessary approvals for this project and APGENCO to take up power house part.

800 MW unit at Kothagudem-VII 800 MW unit at Kothagudem-VII

APGENCO contemplating two more 800 MW units in Andhra region and proposed one 800 MW unit at Kothagudem.

Till date there are no serious efforts in this direction. If delayed further, additional land required may pose a big problem (eg 1/70 Act, etc.)

APGENCO may proceed with two units in Andhra region but put off this unit citing land acquisition problems.

Water is already available. Coal can easily sourced from SCCL, if efforts are made in proper direction.

Other IssuesOther Issues To procure power in future APDISCOMS have to finalize tenders under Case-II bidding.

Land should be acquired by the Licensee under Case-II bidding.

All sites identified by APGENCO for establishment of these power projects are located in Coastal region.

This is because the senior officers in various wings dealing with new proposals, land acquisition and other requirements/sanctions are exhibiting bias.

Coal is being allocated to power projects in coastal region from the coal mines being developed by APMDC in other states. APMDC has 450 million tonnes share in Orissa and 150 million tonnes share in Madhya Pradesh.

On one side SCCL coal is diverted to VTPS/RTPP depriving Telangana region, even the coal from other states also is being allocated to plants proposed in that region.

Nil or very less activities are taken up in Telangana region Under CSR programme compared to many such activities elsewhere.

StationPresent Capacity

OngoingAPGENCO Proposed

TEEJAC Addition

Ultimate Capacity

Kothagudem 1720.0 -- 800.0 -- 2520.0

Kakatiya 500.0 600.0 -- 2400.0 3500.0

Ramagundam 62.5 -- - - 1800.0 1800.0

Sattupalli - - - - 600.0 600.0 1200.0

Nizamabad -- -- -- 1200.0 1200.0

Mahaboobnagar -- -- - - 1200.0 1200.0

Total Thermal 2282.5 600.0 1400.0 7200.0 11420.0

Karimnagar -- -- 2100.0 1400.0 3500.0

Shankarapalli - - - - 1000.0 -- 1000.0

Total Gas based 0.0 0.0 3100.0 1400.0 4500.0

Lower Sileru 460.0 -- - - 230.0 690.0

Priyadarshini J urala 234.0 -- - - - - 234.0

Srisailam Left 900.0 -- - - - - 900.0

Nagarjunasagar 815.6 -- - - - - 815.6

NS Left Canal 60.0 -- - - - - 60.0

Pochampad 36.0 -- - - - - 36.0

Nizamsagar 10.0 -- - - - - 10.0

Singur 15.0 -- - - - - 15.0

Mini Hydel 11.2 -- - - - - 11.2

Lower J urala -- 240.0 -- - - 240.0

Pulichintala -- 120.0 -- - - 120.0

Kanthanapally -- -- - - 450.0 450.0

Total Hydro 2541.8 360.0 0.0 680.0 3581.8

Solar at J urala 1.0 - - - - - - 1.0

Total APGENCO 4825.3 960.0 4500.0 9280.0 19502.8

Proposed Proposed APGENCOAPGENCO

Ultimate Ultimate Capacity (MW) Capacity (MW) in Telanganain Telangana

Strengthening Transmission and Distribution NetworkStrengthening Transmission and Distribution Network

400 KV SS at Suryapet

Laying Gajwel/Siddipet 220 KV line from 400 KV SS at Gajwel.

Other Substations.

Investments in Distribution Network.

THANK YOU

Telangana Electricity Employees Joint Action Committee (TEEJAC)

Telangana powersector discrimination

Engineering

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