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    HomeHyderabadGovernment to introduce new power policy following the end of election restrictions

    Government to introduce new power policy following the end of election restrictions

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    The Telangana government is planning to introduce a new power policy in the State Assembly soon after the election code is lifted. The goal of this policy is to provide affordable electricity and generate power at a lower cost.

    Currently, the State has a peak load demand of 15,623 MW, which is expected to increase to 27,059 MW by 2031-32. The new policy aims to address future energy needs without any shortages by prioritizing arrangements and strategies in line with current practices and electricity laws.

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    To achieve the objective of generating electricity at a low price and promoting renewable power, the government is working on a new policy. This policy will involve partnering with private companies to shape the generation and supply systems in a way that benefits the public without burdening consumers.

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    Furthermore, there are plans to set up a large hydro-electric plant in Himachal Pradesh with government investment. Private companies will also be invited to reduce the investment burden and supply electricity at a lower price. Recent discussions between CM A Revanth Reddy and HP CM Sukhwinder Singh indicate progress in this direction.

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    The previous government’s decisions have posed challenges for power companies in Telangana. The delayed availability of NTPC’s 4,000 MW has increased the burden on Discoms for electricity purchase. Additionally, the Yadadri Thermal Power Plant, initiated by the previous government, remains incomplete due to corruption issues.

    Only 1,600 MW of the NTPC power has been made available so far, with another 2,400 MW expected to be completed in the next five years. The current rate for NTPC electricity is Rs. 5.90/unit, but it is expected to increase to Rs. 8-9/unit once the new plant is operational. This highlights the importance of exploring renewable energy options that offer electricity at a lower cost to prevent significant losses for Discoms.

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