Fearing takeover of the 1,650 MW Rayalaseema Thermal Power Plant (RTPP) at Kadapa by the National Thermal Power Corporation (NTPC), the Joint Action Committee (JAC) of Andhra Pradesh power utilities is asking the State government to reject any such proposal on the ground that building new units to compensate for the consequent reduction in the total installed capacity is not only a costly but also a time-consuming affair.
Besides, the JAC is pointing out that selling off the running plants is not a wise thing to do, as the Central government itself is discouraging fresh thermal power generation capacities and recommending a gradual phase-out of obsolete ones as per the Paris Agreement.
Privatisation
Representatives of the JAC have appealed to Secretary (energy) N. Srikant to convene a meeting (it is likely on December 30) to address their concerns on the NTPC’s plans to acquire the RTPP and the alleged attempts to privatise the Operations & Maintenance (O&M) of Sri Damodaram Sanjeevaiah Thermal Power Station at Krishnapatnam in Nellore district.
As far as the reported plans of the NTPC to acquire the RTPP are concerned, a JAC leader told The Hindu that the fear was not ill-founded, as the NTPC had sought details from AP-Genco MD B. Sreedhar and that the possibility was being explored.
He observed that the Central government had reportedly directed the NTPC not to build new plants, but take over the stressed units, mostly in the private sector, and because many plants of the Independent Power Producers were either shut or incomplete, attention obviously turned to the State utilities, which were in working condition.
“The RTPP has been facing the problem of coal shortage and other issues. It, therefore, appears to be a prize catch for the NTPC,” he observed.
A power sector veteran said that the NTPC had earlier purchased some closed units and put them back into operation, suggesting that if things worked out well, the acquisition of RTPP could become a reality. There were instances of the NTPC acquiring existing power plants, which served its commercial interests.
As far as privatisation was concerned, the JAC leader stated that the recommendations of separate task forces (constituted by the then Planning Commission) on measures for attracting private investments in the power transmission and distribution sectors were communicated by the A.P. Finance Department to the Energy Secretary, and detailed reports were sought on the PPP and franchise models for taking further action.
