Orissa, Andhra to share Machkund hydel unit power

Written by State Bureau | Bhubaneswar, Mar 4 | Updated: Mar 5 2008, 06:54am hrs
The Orissa and Andhra Pradesh governments have finally agreed to equally share power generated from the Machkund hydro power station located at Jalaput in Koraput, bordering Andhra Pradesh. At present, power is being shared on a 70:30 basis between Andhra and Orissa.

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.