TDP’s Renewable Energy Purchase At High Tariff A Huge Loss For AP

Minister Buggana Rajendranath Reddy

Amaravati: Andhra Pradesh Finance Minister Buggana Rajendranath Reddy squarely put the blame on the earlier TDP led State government for financial loss caused to the state exchequer due to the purchase of renewable energy at high rate. In a detailed Facebook post he said that the distress in the State’s energy sector is because of the misrule of the TDP Government.

One look at the financials of the DISCOMs conveys the vulnerability of the sector. Under Mr. Naidu’s 5-year rule, owing to exorbitant energy purchase costs, the P&L of APSPDCL shows that the cost for energy purchase was higher than the utility’s revenues from operations.

It is appalling to see Mr. Naidu’s false and unabashed claims of good energy sector administration, despite his Government’s inability to clear huge pending dues to generators of Rs. 18,375 crores, owing to the utility’s exhaustion of borrowing limits and inability to borrow any further.

Owing to the purchase of renewable energy beyond the RPPO mandate, the loss to the State exchequer is to the tune of

Rs. 436 crores in 2016-17,

Rs. 924 crores in 2017-18, and

Rs. 1,293 crores in 2018-19.

This is owing to favoritism and rampant corruption prevalent during those years.

Despite adequate availability of energy from conventional sources, Mr. Naidu’s purchase of renewable energy at prohibitively high tariffs has resulted in a loss of Rs 5,497 crores during the last four years, if computed on a conservative basis, he concluded.

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