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The State authorities, in the interim, has dropped its plan to promote the 1,650 MW Rayalaseema Thermal Power Plant (RTPP) to the NTPC, going by the current communication despatched by Energy Secretary N. Srikant to the A.P. State Power Employees’ Joint Action Committee.
Mr. Srikant, in his letter, stated that the sale of RTPP had not been envisaged, which, a JAC chief stated, was due to stiff resistance from the workers and another causes.
A four-member committee constituted by the federal government in January 2020 to look into the issues confronted by the RTPP was learnt to have deliberated on the proposed acquisition of a majority stake within the RTPP by the NTPC, and had reportedly advisable to the federal government to not go forward with it “with undue haste.”
Two choices
The committee had initially urged that the RTPP could possibly be made viable by lowering prices by way of rationalisation of coal provide and workers sample, or by bringing in a Joint Venture (JV) companion, topic to the jurisdiction of the Central Electricity Regulatory Commission.
Reliable sources within the energy sector stated that the federal government had thought-about the sale of RTPP by way of the JV route on the grounds of excessive unit price, massive capital investments wanted by it and coal issues, however selected to hold it on hold.
It could also be famous {that a} delegation of the NTPC had held deliberations with high officers of the State Energy Department and even visited the plant to receive a first-hand account of its operational and monetary efficiency.
In truth, the AP-Genco had reviewed the functioning of all thermal crops within the context of the mandate given by the Central authorities to enhance efficiencies and regularly section out the out of date ones.
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