The Srisailam Hydroelectric Power Station has faced another major setback as its 150 MW fourth unit has failed again, just hours after resuming electricity generation. The unit, which had previously undergone repairs following a fire in August 2020, tripped within 10 hours of restarting, bringing production to a halt. This marks the second complete failure of the fourth unit. The power station consists of six units, each with a capacity of 150 MW. The 2020 fire had destroyed the fourth unit, prompting repairs worth ₹68 crore that were completed in August 2022, with generation resuming on August 15, 2023. However, the unit operated for only 80 hours before failing again, highlighting prolonged issues in repair and maintenance by the state power company, GENCO.
Since the 2020 fire, the fourth unit’s inactivity has resulted in a daily loss of approximately 30 lakh units, translating to a production loss of around Rs 1,000 crore for GENCO. During peak demand, Telangana DISCOMs have had to procure electricity from the Indian Energy Exchange at significantly higher rates of ₹5–10 per unit, compared to the ₹2 per unit production cost at Srisailam. Allegations of negligence have also emerged regarding the repair process, with initial stator and rotor work awarded to two separate companies, whose poor coordination reportedly delayed completion. Even after the 2022 repairs, gaps between the stator and rotor caused further operational failure.
In August 2024, the repair responsibility was assigned entirely to a single company, raising questions about the exclusion of the initial firms. GENCO has expressed strong dissatisfaction with the private contractor, threatening to blacklist it, while the company has committed to conducting a detailed study by October 29. Experts warn that the unit may not be able to generate power during the upcoming monsoon season, potentially causing daily losses of ₹60 lakh. The ongoing operational challenges and prolonged repair delays continue to raise concerns over the station’s efficiency and financial impact on the state power sector.