Hyderabad: The Minister for Power, G Jagadish Reddy, said on Saturday that the State will make significant savings in the energy sector by augmenting its power generation and availing a concessional interest on its borrowings.
In an interview to Telangana Today, he said that the State would add 3,000 MW in 2018 to the installed capacity of power generation units, the biggest-ever addition in a single year, which would save on purchasing power to meet energy needs.
Impressed by the performance of the State in the power sector, the Rural Electrification Corporation (REC) and the Power Finance corporation (PFC) have lowered the interest rate on their lending to the power utilities from 11.5 per cent to 9.65 per cent.
The State would make a net saving of Rs 200 crore per annum on account of the concessional interest rates offered by the two institutions, which had been the source of major support for rural electrification projects by providing affordable loans.
The State is gearing up to meet the projected spurt in demand on account of the 24×7 power supply to all categories of consumers from January 1. Enough planning had gone into the free uninterrupted supply of power to agriculture services.
The Minister said a major addition to the State’s power generation in the next four to five months will be the 800 MW super critical coal based Thermal Power Plant (Stage VII) coming up as expansion to the Kothagudem Thermal Power Station.
Even the boilers of the plant were of super critical technology and it had obtained necessary clearances from the statutory bodies. By all means it would be commissioned as scheduled in March next.
The 1,080 (4×270 MW) Bhadradri Thermal Power Project coming up at Manuguru will all also add to power generation in a big way in 2018. An addition of 1200 MW was expected from solar units, thus easing the demand considerably.
Chief Minister K Chandrashekhar Rao was firm on extending any amount of subsidy on the power supply to the agriculture services as it would enable them add to the incomes with additional production and improved productivity.
The 24-hour power supply will cost the government Rs 617 crore additionally. It would be paying Rs 5,684 crore towards the subsidy component as against Rs 5,770 crore being paid so far to the power utilities. After the week-long trial run of round-the-clock supply to agriculture services, the power utilities were tasked with the responsibility of strengthening the distribution network in a big way, he added.
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