Hyderabad, Nov 25 : The Telangana Cabinet on approved the establishment of a third power distribution company (DISCOM) in addition to the existing two DISCOMs in the state.

All the agricultural connections, lift irrigation schemes, Mission Bhagiratha, safe drinking water schemes, and Hyderabad Metro Water Supply and Sewerage Board power connections will come under the new DISCOM.

The state currently has two DISCOMs â?? Northern Power Distribution Company Limited (NPDCL) and Southern Power Distribution Company Limited (SPDCL).

Briefing the media about the decisions taken in the Cabinet meeting, Industry Minister D. Sridhar Babu said the cabinet discussed in detail the increasing demand for electricity in the state, the electricity supply required for the next 10 years, and the electricity generation estimates.

The cabinet has decided to increase the use of renewable electricity in the state. As part of this, it has been decided to immediately call tenders for the purchase of 3000 Megawatts of solar power.

The cabinet decided to call these tenders with time-bound agreements for supplying electricity for a period of five years.

The Cabinet felt that the use of pumped storage power also needs to be increased. It decided to call tenders for the purchase of 2000 megawatts of pumped storage power.

The Cabinet approved the granting of permission to companies and investors to set up pumped storage power plants. It has also decided to examine the MoUs already in place with the DISCOMs.

The Cabinet decided to grant permission to set up 10,000 Megawatts of pumped storage power generation plants in the state.

The government will allocate the necessary land and provide water to the companies that show interest in setting up these plants. The government will enter into an agreement with the condition that the electricity generated in these plants will be sold first to state DISCOMs.

A part of the Clean and Green Energy Policy to attract new industries and investments to the state, the Cabinet decided to allow newly established industries to generate their own electricity. It decided to give immediate permission if new industries apply for captive power generation. There will be no upper limit for electricity generation capacity.

The cabinet has decided to take up the construction of a new 800 MW plant at Ramagundam Thermal Power Station under NTPC. It also asked officials to examine the possibilities of constructing power plants under NTPC in Palvancha and Maktal.

The Cabinet decided to set up an underground electricity cable system in Hyderabad on the lines of a similar system in Bengaluru. They estimated that the cost of setting up an underground cable system within the GHMC limits will be approximately Rs. 14,725 crore.

The cabinet has decided to divide Hyderabad city into three sections according to electricity circles. It has been decided to ensure that all the T-Fibre and various cable network wires are underground along with the electricity lines.

/IANS