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Power situation gives big shock
CM Naidu releases white paper on power sector
Vijayawada:It is not just the state finances alone that are in dire state, even the power sector in Andhra Pradesh is facing severe challenges if the white paper released on Tuesday by Chief Minister N Chandrababu Naidu is any indication.
The white paper clearly outlines the challenges ahead and the need to revive the sector by implementing power sector reforms 3.0. This requires considerable support from the Centre as well. The state government hopes that the Union Budget would focus on this issue as well.
Naidu, who released the white paper without mincing words, said that this sector had incurred losses to the tune of Rs 1,29,503 crore. All projects have been delayed and tariff burden on consumers stood at Rs 32,166 crore. He said the debt of AP power utilities was Rs 49,566 crore. “Losses due to inefficient governance were Rs 47,741 crore,” he said.
The major task ahead for the government was to bring down transmission losses, cost of generation and facilitate shifting to hybrid and green hydrogen so that the state can be future ready. This requires support from all the stakeholders, he said.
According to the white paper, the debts of the power utilities between2019-2024 had gone up from Rs 62,826 in 2019 to Rs 1,12,22 crore in FY 24. The capex loans had also increased from Rs 36,792 crore to Rs 46,380 crore and OPEX loans increased from Rs 26,034 crore to Rs 66,042 crore during the five year period of YSRCP.
The Chief Minister said the short-term borrowings at a higher interest rate of 10.11 per cent to manage cash flows led to additional interest burden of around Rs 10,892 crore. The outstanding receivables increased from Rs 12,945 crore to Rs 52,091 crore resulting in a net increase of Rs 39,146 crore excluding power dues receivable from Telangana Discoms. On the other hand there has been additional burden due to short term power purchase of Rs 12,250 crore.
Naidu further said that the way forward was to go in for the Power Sector Reforms 3.0. Investors who were chased away need to be brought back and brand image needs to be rebuilt while ensuring uninterrupted quality power supply at reliable rates.
Replying to a question, Naidu said a brainstorming on what needs to be done to revive the sector is being done and soon they would come up with concrete proposals.
