Speaking to reporters, Naidu said power will be drawn from the NTPC power station in Orissa using the transmission lines. The state electricity board is expected to form a deal with NTPC to enable power flow from eastern grid.

The contract will be for 20 years period, he said. Naidu said the state government is proposing an investment of Rs 300 crore in the next two and half years exclusively for laying internal transmission lines in the state. The state has requested centre's support, especially from the ministry of power in this regard, he said. The minister for power PR Kumaramagalam has assured Naidu centre's co-operation for reforms in the power sector and announced anadditional naptha allocation to the Andhra Pradesh Gas Power Corporation. Kumaramangalam, who as the chief guest on the occasion said the BJP-led government's main objective is to provide the consumer quality power at a economical price. "It is possible once the national power grid is operational".

Kumaramangalam, however, said extension of allocation of 15 per cent power from the central pool to the SEBs is a political issue and it needs the concurrence of all political parties.

Earlier, while welcoming the gathering, PGCI chairman and managing director RP Singh said the forth inter-regional link of 500 MW capacity at Sasaram Bihar has already started.

Singh said the corporation is looking for newer fields such as communication. The transmission lines can also be used for data transmission super high-ways, he added.

Project includes the 400 kV transmission lines and 500 MW high voltage direct current (HVDC) station costing Rs 660 crore. Initially the transmission lines could enable to draw about200-250 MW power from eastern region where the surplus power is in abundance. By the end of 1998 when the HVDC station is operational, it can further increase the flow of power up to about 500 MW from both ends.