Reeling under severe electricity shortage, Telangana Monday signed a memorandum of understanding (MoU) with Chhattisgarh for purchasing 1,000 Megawatt of power.
Officials of the two states signed the MoU in the presence of Telangana Chief Minister K. Chandrasekhar Rao and his Chhattisgarh counterpart Raman Singh in Raipur.
The two states will soon sign a power purchase agreement. The rate will be decided by the Electricity Regulatory Commission, said a statement from the Chief Minister's Office here.
The Power Grid Corporation of India Ltd. is making efforts to lay a transmission line between the two states. The tender process for the work is to be completed in a month.
Telangana is also considering a proposal to get the power through Maharashtra pending completion of the transmission line between Telangana and Chhattisgarh.
Thanking Raman Singh for agreeing to sell power to Telangana, KCR, as Chandrasekhar Rao is popularly called, made a request for another 1,000 MW. The Chhattisgarh chief minister responded positively to the request.
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The purchase of 1,000 MW will provide much needed relief to the newly formed state, which is reeling under acute electricity crisis, badly hitting agriculture and industry.
KCR has blamed neighbouring Andhra Pradesh for the crisis, saying Telangana was being denied 54 percent share in electricity as per the Andhra Pradesh Reorganisation Act.
The TRS chief has also accused his Andhra Pradesh counterpart N. Chandrababu Naidu of creating hurdles in Telangana's efforts to tide over the shortage by generating power at Srisailam project across the Krishna river.
Speaking in Raipur, KCR recalled the historic and friendly relations between the two states.
He said electricity was the biggest problem faced by Telangana after it came into existence as a state.
He said Telangana was facing the problems which Chhattisgarh faced as a new state 14 years ago.
KCR said Telangana will take Chhattisgarh as a model for development and exuded confidence that the new state will overcome electricity problem in three years.
He also suggested that the two states use Godavari river water for their mutual benefit.
The chief minister said construction of Icchampalli project will help both the states to irrigate their lands and generate electricity. He plans to visit Chhattisgarh again to discuss the project.