Chandrababu Naidu’s Andhra Pradesh Government Releases Whitepaper on Power Sector
The newly-formed Andhra Pradesh government under Chief Minister Chandrababu Naidu has released a whitepaper discussing the current status of the power sector and raising concerns about the previous administration under Jagan Mohan Reddy.
Key Issues Highlighted
The whitepaper pointed out a significant increase in the power tariff burden on consumers and a rise in the debt of state power utilities. The total loans of Andhra Pradesh power utilities increased from Rs 62,826 crore in 2018-19 to Rs 112,422 crore in 2023-24, marking a 79% increase.
Chief Minister Naidu stated, “The Andhra Pradesh power sector needs three new reforms. I have never seen such destruction of the state in my political career, even though this is my fourth term. We are committed to development and are handling these burdens. We will come up with strategies to resolve all these issues. We are committed to providing uninterrupted electricity supply.”
Impact on Consumers
The whitepaper noted that the average tariff for domestic consumers increased from Rs 3.87 per unit to Rs 5.63 per unit, a rise of 45%, during the Reddy government. Poor consumers were particularly affected, with tariff increases of 78-98% compared to up to 29% for middle-class consumers, impacting 153 lakh customers.
Project Delays
Delays in the commissioning of thermal power plants resulted in an additional burden of Rs 12,818 crore. The Polavaram Hydro Electric Project, initially expected to be completed by May 2023, has been delayed to January 2026, leading to an expected loss of up to Rs 1,500 crore and an additional burden of Rs 4,737 crore.
Future Plans
The whitepaper suggested addressing legacy losses of Rs 129,503 crore, restoring investor confidence, and ensuring reliable power supply at affordable rates. Naidu emphasized the need for Power Sector Reforms 3.0 to transform the sector and make Andhra Pradesh an energy hub of the future.
“We have introduced Power Sector Reforms 1.0, Power Sector Reforms 2.0 and now we need Power Sector Reforms 3.0 to transform the sector for empowering the society. Hence seeking inputs and support from all stakeholders to strengthen my hands and make AP as Energy Hub of the future,” the whitepaper read.
