A fresh dispute between AP and Telangana government triggers over sharing of power produced in Hinduja power plant located at Visakhapatnam. This plant will be commissioned in the next one or two months and it is expected 520 mw of power will be produced here in the first phase.

Therefore, Suresh Chadda, the princiapal secretary of T-Energy ministry has ordered the two power distribution companies of Telangana-PDCL and NPDCL to make an agreement with Hinduja Company for obtaining 53.89 percent of power produced in the plant, which is its due share as per the power sharing formula adopted during bifurcation.

However, AP Load Dispatch Center (APLDC) refuses to make any fresh agreements with T-distribution companies, following the guidelines given by AP state government. AP government, which wants to terminate the existing PPAs made with T- distribution companies before bifurcation, argues that it can’t afford to share the power produced in the AP state with Telangana. It argues that it will utilize 100 percent power produced in this plant.

However, T-Government argues that Hinduja Company has agreed to supply 100 percent power produced in the plant to state on regular price. Under that condition, the then AP Government has given permission for constructing the plant in Vizag and a MoU was made between AP government and the Company on 2012, May 17th. So, T-Government has all rights to claim 53.89 percent of power out of 520 mw produced in the Company.

So, as usually Centre is forced to intervene in this dispute also. A committee headed by Mathur invited Principal Secretaries of both states’ energy departments to a meeting to be held at New Delhi on July 14th.