Jagan tells Energy dept to buy low-cost power

VIJAYAWADA: After kicking up a storm by taking a decision to review renewable power purchase agreements signed at higher prices by the previous TDP government, Chief Minister YS Jagan Mohan Reddy has directed the Energy department to sign pacts with generators who offer quality power at reasonable prices. He also told the officials to encourage wind and solar power companies, which offer to provide power at lower prices, and come up with an export policy to attract investors and sell power outside the State.

In a review meeting with Energy department officials at his camp office in Tadepalli on Wednesday, the Chief Minister said that purchase of power at competitive rates would ease the pressure mounting on the debt-ridden distribution companies (Discoms). He emphasised that his government was working to bring out the power sector out of the red in the next five years. “Enter into agreements with any firm that comes forward to offer qualitative power at competitive prices unlike those signed at exorbitant prices during the previous TDP regime,” he suggested.  

According to a recent statement from the Energy department, the losses of power utilities, that were Rs 7,069.25 crore as on March 31, 2014, reached an all-time high of Rs 33,419.53 crore by end of December, 2019. Besides, the operational and capital expenditure of utilities also rose manifold during the period. He told the officials to come up with an export policy for investors for selling power outside the State.
Solar power plants

Discussing the proposed 10,000 MW solar power plants, the Chief Minister noted that efforts should be made to complete the project in a phased manner. It may be noted that the government has decided to set up solar parks with a cumulative capacity of 10,000 MW to supply qualitative and sustainable power to agriculture sector as part of its nine-hour free power initiative.

“Moving on to sustainable power generation will help in bringing down the subsidy to be borne by the State exchequer after four years,” the CM said. The officials said land surveys were being done and that around 50,000 acres of land was identified in Kadapa, Kurnool, Anantapur and Prakasam districts. As per the project report, around 6-7 solar parks would be set up in a phased manner.

The Chief Minister directed the officials to ensure quality coal to APGenco thermal power units so that they become self-reliant. He suggested that the quality of coal be certified periodically by a third-party.

How to save Discoms?
Jagan discussed ways to bail out the power utilities of the mounting debt
Rs 7,069.25 crore: Losses of power utilities as on March 31, 2014
Rs 33,419.53 crore: Losses of power utilities by Dec, 2019
Operational and capital expenditure of utilities also
rose manifold during the period