Impressed with the best performance of AP Power utilities, the Union government has come forward to support AP Power utilities and given directions to release Rs 3,300 crore to Andhra Pradesh power sector under the second trench of Atmanirbhar loan.
Speaking on the occasion of 72nd Republic Day celebrations at Vidyut Soudha on Tuesday, secretary for energy Srikant Nagulaplli said that The Union government would release Rs 3,300 crore to AP under the second trench of Atmanirbhar loan. The Centre had already released an amount of Rs.3,300.00 Crs under Tranche-I of the scheme.
Union Minster for Power, New and Renewable Energy R K Singh has given directions to the Ministry to release the loan to the AP along with other States.
The Secretary said that the Union Minister had expressed his happiness over the power sector interventions in AP and congratulated Chief Minister Y S Jagan Mohan Reddy for his initiative to introduce the direct benefit transfer scheme for free power to agriculture sector.The nine hours day time free power supply to agriculture scheme will make agriculture as profitable activity and empower farmers. “The Chief Minister has laid special focus on farmers’ issues and taken steps to keep farmers happy,” he said.
In order to bring down power purchase costs and make the DISCOMS financially sustainable, the State government has initiated steps to reduce the high power purchase costs.
The power utilities procured 6320 MU power from open market during the current financial year. The average cost of procurement, including transmission charges is Rs 3.12 per unit against the approved weighted average procurement cost of Rs 4.55/ unit.
We were able to save Rs 1.43/ unit and the benefit accrued up to December 2020 was Rs 1023.8 crore. If we add the expected State transmission charge reimbursement to this, the total benefit is Rs 1023.8 crore.
This kind of measures will immensely benefit the power sector and strengthen the 24×7 quality and affordable power supply. The objective of the government is to achieve cost effective power which will benefit people of the State and spur economic development.
Explaining some major achievements of power sector, the secretary said that the power utilities were able to reduce total Aggregate Technical & Commercial (AT&C) losses to 13.36 per cent in 19-20, which was 16.36 per cent in 2018-19. The interruptions reduced by 37.4% in FY20 compared to 2019.
The State surrendered 625 MW of coal power from Central Generating Stations and saved fixed cost payments of Rs 850 Cr/yr to the Distribution Companies.
We convinced the Government of India to change the irrational Central Transmission Utility (Point of Connection) charges calculation methodology. This reduced CTU charges for AP Discoms by Rs 400 Cr/yr.
The power utilities developed and deployed the countries first day-ahead Electricity Demand Forecasting model using artificial intelligence and machine learning that enables the transmission network to take the right decisions on electricity demand and supply, management of grid and minimizing power purchase cost.
The APTransco also intends to develop four more day-ahead forecast models – for wind energy, solar energy, market prices, Central Generating Stations surplus, and frequency.
As part of improving the finances of Discoms, the State government released Rs 17, 904 crore in 2019-20 towards clearing subsidy arrears of Discoms.
The government has released Rs 7200 crore till December 2020. As a result the ARR-ACS gap reduced from 10,600 Cr in FY19 to 3300 Cr in 2020.
The secretary further said that the Chief Minister is very keen to provide 24×7 cost effective and quality power to all categories of the consumers. He strongly believes in that uninterrupted power at cheaper rates will spur industrial growth and eventually State economy.
State government has also recruited 7000 linemen and 172 assistant engineers in electricity department to ensure better services to the consumers. It would also help to strengthen the sector from the grassroots level.
The Joint Managing Directors of APTRANSCO,K Sreedhar Reddy, K Venkateswara rao, Directors of APTRANSCO, K Praveen kumar, K Muthu pandian, Directors of APGENCO, G Chandrasekhara Raju, M V V Satyanarayana, B Venkatesulu Reddy , Antony Raja, Chief Engineers of APTRANSCO, G Raja babu, J Devanand, B Laxmi vara meera kumar, M venkata veeraiah, A K V Bhaskar and CEs of APGENCO other officials of AP Power Utilities have participated in the Celebrations.