Lack of planning pushes Telangana into severe power crisis

The new state of Telangana is reeling under severe power crunch thanks to the lopsided division of assets and sheer lack of planning by the ruling Telangana Rashtra Samithi (TRS) government.

The Andhra Pradesh State Reorganisation Act has envisaged division of assets between Telangana and the residual state (now AP) based on different parameters. While revenue was to be shared between the states based on the origin of revenue benefiting Telangana, burden of debt was to be shared based on population hurting the residual state.

Similarly, the states were supposed to share electricity based on usage, leaving AP to fend for itself as Telangana has more agricultural bore wells compared to AP which has most of its land under canal irrigation. However, the residual state has a majority of the thermal and hydel power generating stations and Telangana will have to depend on the mother state for its power requirements.

As per the Reorganisation Act, Telangana and AP have to share the total quantum of power generated in both states in the ratio of 53:47 even though most of the electricity is generated in AP. AP Chief Minister N Chandrababu Naidu scrapped power purchasing agreements entered with the Telangana based power generating and transmission companies saying  AP State Electricity Regulatory Commission has not ratified those agreement. Now the state has no power cuts whatsoever.

Telangana is now facing an unprecedented shortage of 25 million units per day, resulting in 4 to 12 hours of power cut in cities, including Hyderabad, under domestic sector, two-days of power holiday for industries and virtually no power for agricultural purposes. 

“While 2282 MW of thermal power is generated in Telangana, AP has 4410 MW even though AP did not produce even one kg of coal, this is an example of the injustice meted out towards Telangana,” says Telangana IT minister K T Rama Rao. The Telangana government has plans for erecting power supply lines from Wardha in Maharashtra to Dichpally in Telangana for transmission of 18.5 MU and plans are afoot to generate at least 500MW of solar power.

Telangana claims that about 700 MW power generated in Lower Sileru (460 MW) and Krishnapatnam (800 MW) should have been given to the state, Telangana irrigation minister T Harish Rao, who is facing music from farmers says that only 4417 MW of electricity is available against the demand of 6,200 MW, and there would have been no deficit if the AP state shared the power.

Blaming the TRS for its inept handling of the situation Telangana Congress has launched a Bus Yatra from Nizamabad district. “After TRS took over, 1000-odd farmers committed suicide, mostly due to lack of power and drying crops,” senior leader Shabbir Ali said. “In its election manifesto TRS promised eight hours of uninterrupted power to farming sector and 24-hour supply to domestic, commercial and industrial sector, knowing very well that it would be facing shortage,” he said.

Meanwhile, industry body Assocham expressed its serious concern on imposition of a two-day compulsory power holiday for the industries.  While all the segments of the industry will bear the impact, the small scale units will face death knoll says its secretary general D.S. Rawat. “This would lead to job loss of up to 50 per cent in the factory sector. In view of the impending economic loss and labour unrest, the State Government must immediately explore the opportunities to normalise power situation with the Centre.

Naidu’s plan

Naidu, who has released a series of white papers covering almost all aspects of governance, has countered the Telangana government’s argument saying that AP has a shortfall of 22 MU and is not enjoying surplus power. The AP government says that a total of 1,667 MU equal to 570 MW power has been purchased to meet the demand in the residual state at a cost of Rs 5 to Rs 5.50 per unit.

AP, which is also reeling under extended dry weather like Telangana, has purchased additional power of 2,077 MU since June owing to the summer-like conditions. Unlike the Telangana government which has pinned hopes on Chhattisgarh for additional power distributing companies, AP has entered into future trading for 2000 MW of electricity for the period of June 2015 to May 2016. AP also plans to mop up 2400 MW from central pool through competitive bidding.

AP argues that Telangana has failed to see the writing on the wall and is squarely blaming the proactive Naidu for its follies. “For three months, KCR has slept and is now blaming me for my advance planning while Union minister Piyush Goyal has stated that KCR has not sought the Centre’ s help for additional power,” Naidu said recently. He remarked  that Telangana has not tied up with any agency for power purchase. Telangana purchased only 150 MW from power exchanges that too at hefty price of Rs 8 per unit and above as it has not reserved distribution lines ahead of time as a cautious AP has done.

In an effort to find an amicable solution to the spiraling power shortage issue between the two states, the Centre has extended the tenure of the Neeraj Mathur committee to one more month. The committee was entrusted with several responsibilities, including sharing of electricity. The committee has failed to bring both the governments across the table as both have stuck to very rigid points of view. Looking at the hardening stand of two CMs, Telangana might not find light at the end of the tunnel in the coming three years, at least.