Legacy Of Loss: Naidu's White Paper Says Jagan's Mismanagement Has Caused Rs 1.3 Lakh Crore Debt Burden In Andhra's Power Sector

Following the release of white papers on the status of the Polavaram and Amaravati projects, Andhra Pradesh Chief Minister N Chandrababu Naidu released a white paper on the state's power sector, highlighting the challenges inherited by his government from the previous Yuva Jana Sramika Rythu Congress Party (YSRCP) administration.

The paper stated that the legacy losses amounted to Rs 1,29,503 crore, which included a tariff burden on consumers, increased debt of power utilities, and losses due to inefficient governance.

Per Capita Electricity Consumption Growth Below National Average

He noted that energy sales grew at a low rate of 4.8 per cent, from 54,555 MU in 2018-19 to 69,113 MU in 2023-24, with per capita electricity consumption in Andhra Pradesh increasing by only 123 kWh compared to the national increase of 146 kWh. This slow growth was attributed to steep tariff hikes and re-imposed power cuts.

The DISCOMs (power distribution companies) resorted to power cuts in 2022-23 due to poor power procurement planning and delays in commissioning key power projects like the Polavaram hydro-electric power project, SDSTPS Stage-II Unit-3, and VTPS Stage-V Unit-8. These power cuts impacted various consumer categories, including rural and urban domestic consumers, industries, commercial entities, and farmers.

Increased Debt Due To Failed Re-Negotiations On Power Purchase Agreements

In July 2019, a High-Level Negotiation Committee was formed to renegotiate wind and solar power purchase agreements, leading to legal challenges. The High Court directed interim tariffs for wind and solar projects and later instructed payments as per the original PPAs. To clear outstanding dues, DISCOMs took working capital loans of around Rs 9,000 crore.

Pledging to take steps to reform the power sector like some of his transformational initiatives during previous Telugu Desam Party (TDP) tenures, Naidu sought the support of all stakeholders and said that his vision was to make Andhra Pradesh a future energy hub of the country.