Telangana government not interested to renew the deal with Lanco project

Hyderabad: Andhra Pradesh government is in favour of signing an agreement of power purchase with Lanco power project, owned by former Congress MP Lagadapati Rajagopal, while Telangana has refused the deal.

Telangana Government is not thinking to renew the PPA with Lanco as there is a cheaper alternative than the gas-based power generation, DC reported.

It has been reported that AP Government has taken this decision when there is surplus power in the state, moreover, the power is available at a cheaper rate. The decision may be a result of some political reasons. A senior official in the AP energy department said that political power was “more powerful than real power.”

After the split of the two states, both the governments purchased the project from Lanco 1,100 MW for a year, but when it got expired, Telangana government did not renew it. The cost through Lanco was Rs 6 per unit, on the other hand, power is available at Rs 4 per unit.