A minister-level meeting in Hyderabad on Monday between the two states decided Orissa that would get an additional share of 20% power. In return, it will pay Andhra 20% cost of the assets. The Central Electricity Authority (CEA) will be approached for evaluation of the assets and the cost of 20% share of the power station.
"The two states will sign a power sharing agreement sometime in April 2008," said Orissa energy minister SN Patro.
Machhkund hydro power project had been jointly commissioned by Orissa and Andhra at a cost of Rs 18 crore. Andhra had borne an expenditure burden of Rs 12 crore, while Orissa had provided Rs 6 crore. Its first two units were commissioned in 1955.
According to an inter-state agreement between Orissa and the then state of Madras, Andhra Pradesh was entitled to 70% of power taking into consideration the investment by the state in the project.
A decision to renovate and upgrade the six-unit hydro power station having an installed capacity of 114.75mw was also taken at the Monday's meeting. The cost for it will be shared on a 50:50 basis.