• The Union Cabinet chaired by Prime Minister Narendra Modi has been approved the Proposal of Ministry of Power to allocate 85% power to the Government of Telangana generated from Telangana Super Thermal Power Project (4000MW) of NTPC Ltd. and 85% power from expansion project of Patratu Thermal Power Station (4000MW) of Patratu Vidyut Utpadan Nigam Limited (PVUNL), a subsidiary company of NTPC Ltd, to the State Government of Jharkhand.
• Both the projects are being set up in two phases. Telangana Super Thermal Power Project will come up at Ramagundam in Peddapalli district and the Patratu Super Thermal Power Station will come at Patratu in the Ramgarh district of Jharkhand.
• The first phase of the TSTPP will comprise two units of 800 MW each and second phase for three units of 800 MW each. Patratu Thermal Power Station (PTPS) will comprise three units of800 MW each in first phase while two units 800 MW each in second phase.
• The Andhra Pradesh Reorganization Act, 2014 mandates that TPC shall establish a 4000 MW power facility in the Successor State Telengana, as mentioned in the Thirteenth Schedule of the Act.
• The allocation of 85% power from PTPS expansion project (4000MW) was prime condition in the Joint Venture Agreement between Government of Jharkhand and NTPC Ltd. for 4000 MW capacity expansion of PTPS.
Work in progress
• Presently, Phase-I of both the projects are under construction. Telangana Super Thermal Power Project expected to commission in third quarter of 2020-2021.
• As per the investment approval dated 29.01.2016, the indicative completion cost of the Telangana Super Thermal Power Project (TSTPP) is Rs. 11811.26 crs. out of which Rs. 1849 crs. expenditure have been incurred upto March 2018.
• Further, Phase-I of Patratu Super Thermal Power Station expected to commission in fourth quarter of 2022-2023.
• As per the investment approval dated 30.10.2017, the indicative completion cost of the PTPS expansion project is Rs. 18668 crores out of which Rs. 247.66 crore expenditure have been incurred upto March, 2018,
• Higher allocation of Power to the State of Telangana from TSTPP will ensure that the Central Government has taken the necessary measures as enumerated in the Thirteenth Schedule of the AP reorganisation act, for the progress and sustainable development of the successor States. Higher allocation of Power to the State of Jharkhand from PTPS will also help in improving the power scenario of the State.
• It will facilitate mission of the Government towards providing power to all.
Mains Paper 3: Economy
Prelims level: Telangana Super Thermal Power Project
Mains level: Higher power allocation for states