Andhra Pradesh: Naidu’s whitepaper on power sector blames YSRCP for massive losses

Andhra Pradesh Chief Minister Chandrababu Naidu said a review will be conducted on the agreements reached by the previous government and also assured to end power cuts.
N Chandrababu Naidu
N Chandrababu Naidu
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Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday, July 9, released a white paper on the issues which affected the energy sector during the previous state government headed by the YSR Congress Party (YSRCP).

Naidu, while explaining the content of the white paper before media persons with the help of a powerpoint presentation, said Andhra Pradesh Power Utilities have incurred a total loss of Rs 1,29,503 crore during the last five years. “This includes tariff burden on consumers of Rs 32,166 crore, increase in debt of power utilities by Rs 49,496 crore and a loss of Rs 47,741 crore due to inefficient governance,” he said.

“I want to let the public know about how policies by the previous government affected the state adversely and impacted the public’s future,” said Naidu. He said the Telugu Desam Party (TDP) is now planning to revamp ‘Brand Andhra Pradesh.’

The presentation said energy sales by the state increased from 54,555 million units in 2018-19 to 69,113 million units in 2023-2024, arguing that the growth rate was a mere 4.8%. Naidu blamed the slow growth rate on an ‘intentional delay’ in commissioning the Polavaram Hydro electric project, Sri Damodaram Sanjeevaiah Thermal Power Station and Dr Narla Tata Rao Thermal Power Station.

The white paper also alleged that accumulated losses of the state DISCOMs (distribution companies) increased from Rs 29,147 crore in 2018-19 to Rs 34,090 crore in 2023-24 due to a lack of integrated power procurement planning. “The short-term power purchases at higher costs, and non-receipt of subsidy and government department arrears resulted in interest burden on higher working capital loans,” it said.

In 2019-20, the Andhra Pradesh government filed a memo before the Electricity Regulatory Commission to cancel 21 power purchase agreements (PPA) with wind power developers, a decision which alarmed power producers, investors, policymakers and legal experts.

Naidu said the Union Minister of State for Power and New and Renewable Energy Shripad Yesso Naik has written a letter to honour the Power Purchase Agreements (PPAs) and prevent their cancellation.

Naidu said a review will be conducted on the agreements reached by the previous government and that there will be no power cuts and quality power will be supplied to the consumers.

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