Hyderabad, Dec. 29: The State government of Andhra Pradesh on Friday decided to allow the four gas-based power producers in the State to use naphtha as fuel to augment generation to meet the power crisis. Naphtha is costlier, but the State will immediately get 280 MW additional power. Naphtha is also easily available.

Chief Minister Y.S. Rajasekhar Reddy chaired an emergency meeting which took the decision after the government’s attempt to buy power from other regions failed and the Opposition turned up the heat on the government by coming out to the streets in protest.
 
Both the Power Trading Corporation and National Power Trading Corporation have expressed inability to supply power to the State. With the four thermal stations in Kothagudem also continuing to be under forced outage, the total shortfall on Friday went up to 1,450 MW.  As the grim scenario unfolded, the Chief Minister met with officials and decided to allow GVK, Spectrum, Lanco and Reliance units to use naphtha as fuel.
 
These power producers had opted for gas because naphtha was costlier, till they began facing supply problems in September. The plants are largely idle now. The Chief Minister told the meeting that the Rayalaseema Thermal Power plant would begin to generate about 210 MW from January 16 and another 210 MW would be ready in six months.
 
 AP Transco chairperson and managing director Rachel Chatterjee said that the tenth unit of Kothagudem Thermal Power Station would be repaired on Friday night. This would add another 225 MW to the State’s kitty.
 
Officials informed him that 1,000 MW would be available from Vijayawada and Bhupalapalli thermal stations by 2008.  Reddy directed APTransco to strengthen the distribution network by investing Rs 2,696 crore in three years and asked officials to ensure that farmers and students preparing for exams were not put to hardship. Though the government put on a brave face, the failure to get power from other regions has caused deep worry.
 
The power situation across the country is grim and regional grids are facing severe shortage, including the northern region which usually enjoys surplus. Only the eastern region is in a comfortable position and the State government is taking about 150 MW from there.
 
 The Power Trading Corporation and National Power Trading Corporation have informed AP Transco that they would be able to sell about 200 MW power after January 15.