APGENCO set to shelve Teesta-III

APGENCO, which planned to invest in Teesta Urja project in Sikkim, is having second thoughts on investing in equity outside the State.

APGENCO had bagged the O&M Contract for the prestigious 1200 MW Teesta Stage III Hydro Electric Power Project in Sikkim in March 2005 with a possibility of investing in the project. At 3829.40 MW, AP GENCO has the second highest hydel generation in the country

According to original plans, APGENCO was to also participate in equity for the Teesta-III after receiving the techno-economic feasibility of the project.

But now experts have advised APGENCO against going ahead with the non-AP equity plans since in the State itself it would have to invest heavily into power generation. “Better sense should now prevail on APGENO,” said a top power sector analyst.

Meanwhile, the Discom came under increased pressure with AP Chief Minister Mr N Kiran Kumar Reddy asking them to ensure that under any circumstances 7 hours of power supply to farmers. This should be strictly adhered to and there should be constant monitoring on this, he told the Discom officials.

Major Industries in the State are having 30 % power cut as of now, though the officials are making efforts to maintaining power supply to emergency services and small scale units.

APGENCO had also received offers for O&M and equity participation for Rolep (36MW), Ralong (48MW) & Chakung Chu(63MW) projects in Sikkim and some other gas-based projects in South India which is under examination of APGENCO Board.

Government official say APGENCO has now emerged as a National Player for the O&M operations in Hydel Sector extending its boundaries outside the state of Andhra Pradesh for the first time.

Expert opinion, therefore, is that APGENCO should concentrate only on providing its expertise in O&M for other States rather than frittering away its precious resources in equity outside.         

This assumes significance in view of the growing power shortages which could go up to 3900 MW (93 million units) in the peak season. The Discoms in the State have floated a tender for purchase of 2000 MW (48 mu) from June to May next year. The Discoms could contract for purchase of only 742 MW, media reports said.

The average demand during May, 2012 was 262 MU per day against 227 MU per day during the same period last year registering an increase of 15.41%. Presently Discoms are supplying around 239 MU/day with a shortfall of 29 MU per day. The Peak demand met during May, 2012 (up to 28th) is 11099 MW against 10474 MW during the same period last year registering an increase of 5.97%.

During 2011-12, as against requirement of 91730 MU, 85149 MU was met resulting in a deficit of 6581 MU (7.2%).  Officials said power supply position in Andhra Pradesh is far better compared to many other States in the country.