Telangana government had taken a major decision to not to use the power from Krishnapatnam Project of Andhra Pradesh. Both the Telugu States are loggerheads for this power since the state bifurcation. Telangana wants a share while AP went on refusing it stating no Power Purchase Agreement.
Telangana government estimated that Krishnapatnam Power to be a financial burden for the state in the long run particularly after several proposed plants in Telangana will come operational. And so the government refused the power. Even though Telangana Transco in its letter mentioned that the refusal is only for this season, it will be a decision in the long run too.
Krishnapatnam — End of a controversy now
Telangana managed to avert power crisis this season by discouraging Paddy cultivation in Rabi season and buying extensively from National Power Exchange. This decision of Telangana may hurt it in future as Unit Power from Krishnapatnam is just 6 Rupees while the state sometimes have to spend as much as 10 Rupees per unit.
