Wed Jan 08 11:25:27 UTC 2025: ## Telangana to Finalize Power Purchase Agreement for NTPC’s Ramagundam Project
**Hyderabad, January 8, 2025** – The Union Ministry of Power will soon convene a meeting to finalize a Power Purchase Agreement (PPA) for 800 MW of power from NTPC’s 4,000 MW Ramagundam project in Telangana. This follows the completion of the project’s first phase (2×800 MW), with the state’s power distribution companies already drawing power under a separate PPA.
The Telangana government has agreed to purchase 800 MW from the second phase, contingent on NTPC connecting the unit to the TGTransco network to avoid interstate transmission charges. Currently, the draft PPA is under review.
This development comes after a political controversy sparked by Union Minister G. Kishan Reddy’s claim that the Telangana Congress government had stalled the second phase of the project. Chief Minister A. Revanth Reddy countered, stating the government is carefully considering the proposal, noting that the power cost could increase from ₹5.3 per unit to ₹8-₹9 per unit due to the project’s four-to-five-year completion timeline. He expressed concern that signing the agreement now would obligate the state to purchase power at the higher rate. The remaining 1600 MW of the project is also under development.
First Piper 