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Govt. rejects Transco plea to cut supply to farm sector

By Our Special Correspondent

HYDERABAD, OCT. 21. The State Government has rejected a plea made by the AP Transco to reduce supply to the agriculture sector by two hours and maintain it at seven hours instead of nine hours as at present.

As of now, the power position in the State is comfortable with the demand being met to the full measure without any cuts in any sector. On Friday, the generation was 129.8 mu while it was 128.7 mu the same day last year. The load from the agriculture sector has fallen drastically due to the widespread rain all over the State in the past few days. However, it is expected to pick up and touch 40 mu a day in the next few days, reaching a peak of 45 mu by December first week when the rabi season begins.

The Transco sought to restrict supply to pumpsets in view of the shortfall expected in the next few days at 5 mu a day, caused by a general increase in consumption, dry spell in parts of Rayalaseema and Telangana which account for most of the 21 lakh pumpsets in the State, and low generation by hydel stations this year as never before due to poor reservoir levels.

According to a Transco estimate, the shortage which will be 8.6 mu in December necessitating a sudden switchover to pumpsets, will reach a peak of about 25 mu by March. The requirement by March will be 155 mu while the availability from all sources can go only up to 130 mu.

While saying ``no'' to Transco, the Government asked it to instead a make an assessment of the total requirement, taking into consideration the expected load from agriculture, and accordingly, make purchases from outside.

In a follow-up of the Government directive, the Transco asked the distribution companies, in turn, to assess the requirement in their respective jurisdictions with nine-hour assured supply to the farm sector. Right now, the assessment is being made by all discoms. Pending the final picture on this aspect, the Transco has approached Maharashtra, Gujarat and Punjab. Only Punjab has responded, ``agreeing'' to sell power at the rate of around Rs 2.50 per unit. The Transco which initially wanted to make bulk purchase, scaled down the planned quantum to 100 MW. The Punjab power begins flowing in depending on the assessment being made by the discoms which should be in tune with the 42,500 mu, the quantum permitted by the AP Electricity Regulatory Commission for the year under the Annual Revenue Requirement report based on which the tariff hike was allowed.

Under the circumstances, the Lanco's 355-MW Kondapalli plant, the first short-gestation project to begin operation, has come out as a great boon. Even on trial runs, it is adding 70 MW to the grid's installed capacity, generating about .6 mu a day. When it is fully harnessed from next month as expected, it will add about 8 mu a day. But the problem, according to a Transco official, is the restriction laid down by the Regulator that the Transco should opt for ``low cost'' purchases. Pending finalisation of Power Purchase Agreement with the Lanco, purchases from this point is being made around Rs 2.50 per unit. But under the PPA, the cost may go up to Rs 4.10 or so as, it has to include the cost of naptha, the fuel used for basic units at the station.

With storage not improving at Nagarjunasagar, the generation at its main powerhouse has fallen to about 300 MW against its installed capacity of 810 MW.

In contrast, with reservoir being full at 884.6 ft (as against the FRL of 885 ft), the Srisailam hydel station is running at full capacity (770 MW).

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