Chandrababu Naidu attributes the 1.29 lakh crore loss in the Andhra power sector to the YSRCP

Andhra Pradesh Chief Minister N Chandrababu Naidu has revealed significant financial issues in the state's power sector, blaming the previous YSRCP government for losses exceeding Rs 1.29 lakh crore. During the release of a white paper, Naidu detailed the hefty tariff burden on consumers amounting to Rs 32,166 crore, an increase in debts of power utilities by Rs 49,596 crore, and losses due to inefficient governance totaling Rs 47,741 crore.

Naidu explained that reforms in the power sector had been initiated during his party's previous terms, but now more reforms were needed to transform and empower the sector. He highlighted several factors contributing to the sector's financial losses, including delays in commissioning thermal power plants, the Polavaram Hydro Electric Project, and additional costs from short-term power purchases.

He further noted an interest burden of Rs 10,892 crore due to borrowings and accumulated losses of Rs 9,618 crore resulting from the poor performance of distribution companies (DISCOMs) and the Andhra Pradesh Power Development Company Ltd (APPDCL).

Naidu criticized the previous YS Jagan Mohan Reddy government for retracting incentives promised to companies by the TDP administration and renegotiating solar and wind power purchase agreements, which led to legal disputes. He accused the YSRCP government of increasing the financial burden on the public by raising power tariffs through additional charges, causing a 98% hike in rates for the lowest-consuming households and significantly impacting poor consumers.

He pointed out that the debt of power utilities had risen from Rs 62,826 crore in FY 2018-19 to Rs 1.12 lakh crore in FY 2023-24. Naidu emphasized the need for new power sector reforms to navigate out of these financial difficulties with minimal damage and called for stakeholder input to help revive the state’s power sector.

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