In a major development, Telangana Transco had written to South Indian Regional Load Dispatch Center in Bangalore not to supply the power from Krishnapatnam project. Telangana is fighting for its share of Power with Andhra Pradesh for a long time but suddenly withdrew its claim after it found that the power from this project is costly and is economically not viable.
Krishnapatnam Plant construction costs increased by several folds subsequently Power rate also increased. Each unit of power from here is costing 6 Rupees for Telangana but the Power from other sources is much cheaper.
Telangana government had taken this decision after successfully averting Power cuts in the state. The Power demand in summer was put in check after the government discouraged Paddy cultivation which requires more water (and Power to run the motors). Telangana also made many purchases from National Power exchange. However, Telangana sources say the rejection is only confined to this season.
