The Hindu : Andhra Pradesh News : ‘Free power a Herculean task’

Online edition of India's National Newspaper
Sunday, Oct 07, 2007
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Andhra Pradesh

Andhra Pradesh

‘Free power a Herculean task’

Gas-based projects operating at half their capacities

HYDERABAD: As the debate on extending supply of free power to farmers beyond seven hours continues, availability of gas from Krishna-Godavari basin at prices quoted by the Government has once again taken the centre-stage. After several representations to the Central Government, the State had recently decided to take in its stride the recommendations made by the empowered Group of Ministers on the formula fixed by Reliance Industries based on Market Discovered Pricing mechanism. While the State sought supply of gas at US $ 2.5 an MMBTU (million metric British thermal unit), Reliance Industries, however, accepted a token reduction of price from US $ 4.5 to US $ 4.2 per MMBTU. However, the promise made by the main Opposition Telugu Desam to give nine-hour and Telangana Rashtra Samiti assuring 12-hour quality power free of cost to farm sector forced officials to calculate the impact of the announcement on the Government. Senior officials are firm that nine-hour or 12-hour supply to farm sector will be a Herculean task in the present circumstances owing to shortage of supply. But, the situation will dramatically alter if the Government secures firm allocation of gas. Four more projects -- Konaseema, Gautami, Vemagiri and GVK -- with total installed capacity of 1,499 MW are lying idle for want of firm allocation of gas.

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