Union Minister for Coal and Mines G Kishan Reddy on Monday asked the Telangana government to enter into a power purchase agreement (PPA) with the National Thermal Power Corporation (NTPC) in the wake of the rapidly growing power demand in the state, which crossed the 18,000 MW mark last week.
In a letter addressed to Chief Minister A. Revanth Reddy, Kishan Reddy said that the second phase of NTPC’s 3 x 800 MW thermal power plant, coming up at Ramagundam in Peddapalli district, will help meet the growing electricity demand in Telangana while ensuring supply of quality power at lower cost.
Telangana recorded a peak electricity demand of 18,139 MW, which was recorded at 11.01 am on March 3, the highest peak demand ever recorded in the history of Telangana, state Deputy Chief Minister Mallu Bhatti Vikramarka, who holds the energy portfolio, said in a statement.
Vikramarka said Telangana is emerging as a state with high electricity consumption intensity due to rapid expansion in IT, pharma, manufacturing and irrigation sectors. The state had previously recorded peak demand of 15,623 MW on March 8, 2024 and 17,162 MW on March 20, 2025.
“Telangana is not only meeting the current demand but is also fully prepared for the upcoming summer peak demands with advance planning. A strong grid system, forward-looking strategy and coordinated operations are our strengths,” the Deputy Chief Minister said.
Referring to Vikramarka’s statement, Kishan Reddy said in his letter that the demand for electricity is expected to rise further in the coming years. He said the Deputy Prime Minister himself recognized the need to add 5,000 to 6,000 MW of thermal power generation capacity to maintain grid stability in line with national energy targets. “The demand may reach nearly one thousand megawatts by 2047,” the Union Minister noted.
He pointed out that as part of the first phase of the planned 4000 MW thermal power project at NTPC, Ramagundam, two thermal power units with a combined capacity of 2 x 800 MW (1600 MW) have already been set up at a cost of approx. $12,000 crore using advanced supercritical technology. He said the project was dedicated to the nation in 2023 by Prime Minister Narendra Modi.
After completing the first phase, NTPC has initiated steps to implement the second phase, which proposes three additional units of 800 MW each, adding 2,400 MW of generating capacity. As in the first phase, 85% of the power generated from the second phase will be supplied exclusively to Telangana, he said.
He asked the Prime Minister to facilitate a power purchase agreement between the Telangana government and NTPC for the 3 x 800 MW Phase II project at Ramagundam.
Kishan Reddy said NTPC has vast national experience in setting up low-cost thermal power projects using advanced supercritical technology. “If NTPC is given sufficient flexibility to secure coal supply for the complete 5 x 800 MW project, the company is ready to produce electricity at competitive rates and meet the power needs of Telangana,” he said.
Such a move would benefit the state government and consumers while boosting power supply in Telangana in the long run, he said.
