Chandrababu Naidu calls for methods to cut power generation costs

Amaravati: Consequent to the heavy inflows into the Srisailam Project and eventual release of water from the project and subsequent power production at the hydel unit at the project, Chief Minister N Chandrababu Naidu sought a comprehensive report on hydel power production in the State.

• Holds a teleconference on water and energy situation across the State
• Stating that AP has become No.1 State in energy security in the country, he instructs officials to see that the State achieves similar status in water security
• Reiterates that there will be no hike in power tariff
• This decision will benefit 1.5 crore electricity consumers in the State

The Chief Minister conducted a teleconference with Ministers and officials on Sunday and held a review on water and energy situation across the State. Naidu reiterated that there would be no hike in power tariff.

He said that he had promised the people that they would enjoy the fruits of the second phase of power reforms. The decision not to hike the power tariff would benefit 1.5 crore consumers, Naidu pointed out.

He said with the blessings of Lord Mallikarjuna Swamy and Goddess Bhramaramba, the Srisailam reservoir received adequate inflows and water was also being released from the project.

This paved the way for the production of cheaper hydel power. Last month same day, the hydel power production was zero at Srisailam. Now the project produces more than 16.5 MU (1.65 crore units) of power. To continue the hydel power generation, the Chief Minister stressed the need for conserving water. He said the State was making rapid strides from energy security towards water security.

About 4.5 lakh water harvesting pits were dug up across the State for storing water. This also ensured adequate water availability in Rayalaseeema. The Chief Minister further said that water in the reservoirs provides water security and being number one in energy security, the State should now focus on being the No.1 State in water security.

Transco CMD, Genco MD and IT Principal Secretary Vijayanand explained that through Donkarai, Lower and Upper Sileru, Machkund and Srisailam projects, 2,200 million units of hydel power is expected to be produced this year.

He said that out of a demand for power of 145 MU per day in the State, more than 22 MU power is being supplied through hydel, solar and wind power projects. This is helping in cost reduction in power generation, he said.

The Genco MD said the hydel power generation in Srisailam would help the State save Rs 300 crore to 400 crore annually. He said the power generation at Srisalam Project would help save Rs 3.5 crore whenever production takes place at the hydel unit.

Subsequently, the Chief Minister sought a report on cost reduction in electricity production. Naidu discussed with officials on production of quality power at low costs.

Principal Secretary of Energy Ajay Jain informed the Chief Minister that cost of a unit of power production was Rs 4.09 in Andhra Pradesh. While the cost of power production in Karnataka, Maharashtra, Telangana, Tamil Nadu and Gujarat stood at Rs 3.90, Rs 4.1, Rs 4.26 and Rs 4.35 respectively.

Energy Minister K Kala Venkat Rao, Irrigation Minister Devineni Uma Maheswara Rao, IT Minister N Lokesh, Chief Secretary Dinesh Kumar, Special Chief Secretary Satish Chandra, Principal Secretary to CM G Sai Prasad and Irrigation Secretary Sasibhushan Kumar participated in the tele-conference.