| The Orissa government has been asking its counterpart in Andhra to restore the ratio of 50:50 sharing of power from the project in place of the current 70:30 ratio which is favourable to Andhra Pradesh. |
| An early settlement of the issue related to sharing of power generation is also necessitated on account of the renovation work to be undertaken at the project, the life of which has already expired. |
| The erstwhile government in Orissa had signed an agreement with the then composite Madras state in 1945 on the sharing of Machkund water with 20 per cent from its share acceding to Madras in return to a payment of royalty for a period of 99 years. |
| The agreement also says that the royalty amount should be reviewed after 30 years. This review is yet to take place since the 30-year period ended in 1985. |
| But a subsequent agreement signed by the then chief ministers of both the states in 1976 has replaced the royalty clause with compensation payment of 8 paise per unit to Orissa government on the 20 per cent of total power. |
| According to D K Panwar, principal secretary and chairman of APGenco, who recently held a meeting with his counterparts in Bhubaneswar, the Orissa government now wants Andhra Pradesh to restore 20 per cent of its share to it. |
| Even though the demand of Orissa government appears to be quite normal and justified, the Andhra Pradesh government has been pointing at the original agreement period of 99 years which still has around 40-year validity. |
| "Discussions have been very productive and we could understand each other's stand on the issue. We have briefed our chief minister on the issue. He will take a final decision enabling a ministers' level meeting to ink the pact, which may be held in a couple of months," Panwar said, refusing to disclose further details. |
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