Jagan ruined Andhra power sector, says Naidu; White Paper reveals power utilities' loans up by 79% in 5 years

Hyderabad: A White Paper on AP's power sector revealed on Tuesday that the total loans for Andhra Pradesh power utilities has increased by 79 per cent in the last five years — from Rs 62,826 crore in FY 2018-19 to Rs 1,12,422 crore in FY 2023-24.

Furthermore, CAPEX loans increased from Rs 36,792 crore to Rs. 46,380 crore in the last five years whereas OPEX loans increased from Rs 26,034 crore to Rs. 66,042 crore.

The last five years also witnessed short-term borrowings at a higher interest rate of 10.11 per cent to manage cash flows. Thus, the current Naidu government will have to bear the additional interest burden of around Rs 10,892 crore on short-term loans in the last five years.

The White Paper pointed out that losses of AP DISCOMs increased from Rs 29,147 crore to Rs 34,090 crore in the same time period. Short-term power purchases at higher costs, non-receipt of subsidy and government department arrears has increased the interest burden.

Chief minister N Chandrababu Naidu observed that the entire power sector has been 'ruined' with the inefficient and arrogant rule of the former chief minister, Y S Jagan Mohan Reddy.

While releasing the White Paper on the power sector at the State Secretariat in Velagapudi on Tuesday, the Chief Minister said that the state has suffered a loss of a whopping Rs 1,29,503 cr with the wrong decisions taken by Jagan.

"The YSRCP government has imposed a huge burden of Rs 32,166 cr on the power consumers in the past five years in the shape of novel charges like true-up charges," Naidu said.

Regretting that there was no additional generation of power and not even a single project was completed in these five years, the Chief Minister said the more his government is studying the issues, the more the failures are coming to light.

Naidu recalled that after the bifurcation of the state in 2014, the then TDP regime could overcome the 22.5 million units power deficit and supplied quality power to the consumers for a full five years, till 2019.

"As the Chief Minister of combined Andhra Pradesh I have introduced several reforms in the power sector which were later shown the way for the whole nation. Of course, with these reforms in the power sector we lost power. But I am happy that I have laid the foundation for a better change," he said in a rather sarcastic way.

He made it clear that there will be no power-cuts any longer and quality power will be supplied to the consumers. He said that the lives of the people are totally linked with power and the more efficiently this can be utilised the more benefits they get.

Recalling how efficiently power was supplied when the TDP was in power earlier in both the combined Andhra Pradesh and after the state bifurcation by winning 145 awards, the Chief Minister felt that the entire sector was totally destroyed during the YSRCP rule. "Are the leaders who completely damaged the systems eligible to be in power and do such people need people's support," Naidu asked.

Stating that the financial condition of the state is very bad and there are no funds in the exchequer, Naidu said that during his recent New Delhi visit also he sought the cooperation of the Union Ministers. "The people are now happy but the YSRCP leaders are totally upset," the Chief Minister maintained.