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The signing of the Power Purchase Agreement (PPA) for the upcoming 800 MW unit of NTPC鈥檚 Ramagundam plant is expected to be delayed further, as Telangana鈥檚 State Government weighs cost implications. Although PPAs for 1,600 MW (2脳800 MW) from the 4,000 MW project鈥攑romised under the Andhra Pradesh Reorganisation Act, 2014鈥攈ave 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脳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.鈥淪igning the agreement now will make it unavoidable for Telangana to bear additional expenses,鈥� 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鈥攎aking 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 亚博体育官网首页 Affairs has indicated that Telangana is expected to absorb all the power generated by the NTPC plant. Union 亚博体育官网首页 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.