Telangana: Irrigation dept to spend 50% of its budget on power bill

HYDERABAD: The irrigation department may have to cough up about Rs 7,000 crore to power utilities this year towards power consumption charges. The irrigation department, which has submitted its indent to power utilities, said it may utilize 5,900 MW of power for operating 48 lifts and pump houses under various lift irrigation projects, especially Kaleshwaram lift irrigation project for 2020-2021 fiscal.
“Last year, the irrigation department had utilised 2,400 MW for irrigation projects. As Kaleshwaram project is expected to be operational to draw 2,000 million cubic (tmc) feet of water daily, the power demand is likely to go up to 5,900 MW,” a Telangana power utilities official told TOI.
The irrigation department has informed power utilities that peak power demand for irrigation sector is expected in October and November with 3,100 MW and 3,000 MW respectively, while it would be between 500 MW and 750 MW in the non-peak time. Water reaches all projects during the monsoon and it is released downstream from August. The power requirement indent was submitted to the power utilities by the irrigation department as it has to make arrangements by entering into agreements with private power producers and get approval from the Telangana State Electricity Regulatory Commission (TSERC) by incorporating it in the annual aggregate revenue (ARR) for discoms.
The irrigation department had earmarked Rs 11,000 crore for 2020-2021, however, the power bill projection alone is 50% of the allocation. Sources in TSGenco and Transco said the government is yet to pay last year’s power consumption charges.
Meanwhile, the power utilities have decided to collect Rs 5.80 per unit which comes to about Rs 8 per unit with other charges. “If the department does not operate lifts or consume less than the projected power (in non-peak season), the department has to pay 20% of the fixed charges. The department is seeking to reduce power tariff to Rs 3 per unit, but the state government and TSERC have to decide on the tariff,” a chief general manager said. Irrigation department sources said they will go for open access method of procuring power to reduce power bill, if required.