Following Karnataka, two more states, Tamil Nadu and Madhya Pradesh, are also seeking power from Andhra Pradesh out of its surplus. The state passed a milestone in the power sector by selling 15 million units of power to Karnataka from May 1. Andhra Pradesh, a deficit state in power till now, produces surplus power thanks to the power reforms.
Andhra Pradesh generates 9,212 mw of power, which includes 2,953 mw thermal, 3,123 mw hydel, 1,500 mw from the Central share and 1,360 mw by private power projects. The balance comes from small and mini plants and non-conventional sources. As against this, the average consumption is just over 6,000 mw. In spite of the huge distribution losses and theft, the state is already marginally surplus in power. The second unit of the Simhadri power plant will add 500 mw by July-August this year. Units IV, V and VI of the Srisailam power plant will be commissioned in phases by March 2003, adding another 450 mw. Besides, projects worth Rs 6,000 crore are underway in both the public and private sectors.
P.M.K. Gandhi, Director, APTransco
According to P.M.K. Gandhi, Director, Transmission Corporation of Andhra Pradesh Ltd (APTransco), the state sells to Karnataka power at Rs 2.50 per unit, which is a very low price. APTransco's per unit cost is Rs 1.81 and with 8.5 per cent being allowed as transmission loss, the cost would work out to Rs 2 per unit, leaving a profit margin of 50 paise per unit. In May, APTransco sold 15 million units to Karnataka, though that state initially wanted 100 mw. The supply was stopped, perhaps due to improved availability of power in that state.
Tamil Nadu has now approached APTransco for 100 mw, but it will be given only half of its requirements in view of the acute summer conditions prevailing in Andhra Pradesh and also the breakdown of the first unit (500mw) of the Simhadri power plant. The plant was not working to its full capacity since its commissioning in the last week of February. AP Transco is contemplating to give Tamil Nadu the total requirement of 100 mw as and when the Simhadri unit stabilises its output. The supply to Tamil Nadu initially would be made for three months and later it would be extended to the whole year.
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