Delay Likely in NTPC Ramagundam PPA for 800 MW Telangana Unit

30 Apr 2025 CW Team

The signing of the Power Purchase Agreement (PPA) for the upcoming 800 MW unit of NTPC’s Ramagundam plant is expected to be delayed further, as Telangana’s State Government weighs cost implications. Although PPAs for 1,600 MW (2×800 MW) from the 4,000 MW project—promised under the Andhra Pradesh Reorganisation Act, 2014—have already been signed, the agreement for the third unit is pending. A draft has been submitted to NTPC, but the matter is now under review by the Central Electricity Authority following requests for amendments by central utilities.

The delay stems from concerns raised by Chief Minister A. Revanth Reddy regarding the potential rise in per unit power cost. Currently estimated at Rs 5.3, the price could reportedly surge to over Rs 8 per unit by the time the remaining 2,400 MW (3×800 MW) capacity becomes operational which is expected to take four to five years. Finalising the PPA now would obligate the State to purchase 85 per cent of the power output from the new unit, regardless of future costs.

“Signing the agreement now will make it unavoidable for Telangana to bear additional expenses,” the Chief Minister warned during the recent budget session. He added that the cost per unit would reflect capital costs, coal linkage expenditure, and profit margins—making power from the project more expensive.

The State Government is reportedly considering the possibility of entering into an agreement with NTPC at a later date, based on its evolving power needs.

Supporting the concerns of the State, the Union Ministry of Home Affairs has indicated that Telangana is expected to absorb all the power generated by the NTPC plant. Union Home Secretary Govind Mohan, during a recent review, suggested that the State should take responsibility for the full 1,600 MW output currently generated by the operational units.

Infrastructure Transport

06 Feb 2026

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..