The Hindu : Andhra Pradesh News : Hinduja power project hits roadblock

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Thursday, Oct 14, 2010
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Andhra Pradesh

Andhra Pradesh

Hinduja power project hits roadblock

Special Correspondent

APTransco's no to sale of 75 p.c. power in open market

Chief Minister K. Rosaiah is expected to take a decision soon on the issue
Left parties demand a fresh look into 520-MW BPL project coming up at Ramagundam

HYDERABAD: The APTransco and the Energy Department have taken a firm stand against allowing Hinduja power project (1040 MW) proposed near Visakhapatnam to sell 75 per cent of its power in the open market as a merchandise plant.

At the instance of the Government, AP Transco held negotiations with the developers to extract an undertaking to dedicate the power generated by the plant wholly to the distribution companies.

On failing to get any positive response, AP Transco submitted a report, prompting the Government to take a final decision in favour of the consumers. Chief Minister K. Rosaiah is expected to take a decision soon on the issue on which an all-party meeting is demanded by the CPI and CPI (M).

The Communist parties have also demanded a fresh look into the 520-MW capacity BPL project being set up at Ramagundam.

The Communist parties said that if the “merchandise plant” status was accorded to the Hinduja project as sought, its developers would sell the 75 per cent power to the utilities at a price several times higher than the one fixed by the APREC for the 25 per cent. This would burden the consumers heavily and give a windfall profit to the developer.

As a developer can't be forced to sell the power to a particular State or party under Electricity Act 2003, the Energy Department referred to the original understanding reached between the Government and the Hindujas.

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