UP’s ‘power loan’ plan may not work in TS, AP

The Union power ministry has advised all states to follow the banking model of Uttar Pradesh state, by entering into an arrangement with Maharashtra and Madhya Pradesh to meet the power demand.

Under this banking model, Maharashtra and Madhya Pradesh will supply power to Uttar Pradesh but it need not pay money. However, it has to pay back power only to Maharashtra and Madhya Pradesh states.

Whenever Maharashtra and Madhya Pradesh need power, UP will supply it from its generation. If UP does not have power at that time, the power loan stays. When UP supplies power, the other two states will reduce their own generation.

In the wake of AP and TS fighting over power dues and stopping power supply to each other, the advice of the power ministry has acquired significance.

The power ministry said such arrangements will help all concerned in their time of need.

Most of the states have surplus power at present and some states like Punjab are closing the thermal power units to reduce the power generation. UP, which is facing a power shortage, is likely to become ‘power surplus’ at the end of the current financial year, according to Central Electricity Authority.

In UP, Maharashtra and Madhya Pradesh, BJP is in power so there is no problem with such arrangements.

In Telangana state, TRS is in power and in AP it is the Telugu Desam, which is an Opposition party in Telangana state.

In this situation to come into an arrangement like, UP and Maharashtra and Madhya Pradesh is not possible. At present both AP and TS have stopped power supply to each other with the dispute over power dues.

The officials said that such arrangements are possible in the states where the same party or like-minded parties are in power.