The state aims to be energy self-sufficient by 2018-19 and its government has committed to providing 24/7 power to all households and businesses within that timeframe. To this end, it has proposed adding around 10 GW of new power capacity to its current installed capacity of 4365 MW.
Telangana has already awarded contracts for two coal-fired power plants, a 1080 MW project at Manuguru and a 4 GW plant at Damaracherla. Both plants are under construction by Bharat Heavy Electricals Ltd (BHEL).
The Manuguru plant will use subcritical technology and both plants will need to rely on imported coal for over half their fuel supply, leading to criticism from environmental activists and economists.
National power minister Piyush Goyal has reportedly asked Telangana’s Chief Minister K Chandrasekhar Rao to either downsize or cancel the proposed projects. Goyal noted that, under the AP State Reorganization Act of 2014, state-owned National Thermal Power Corporation of India (NTPCIL) is set to provide 4 GW in new thermal power capacity for the state.