Power sector backbone of state economy, says Ravi Kumar

VIJAYAWADA: The power sector is the backbone of Andhra Pradesh’s economy, Energy Minister Gottipati Ravi Kumar said during the Budget discussion in the AP Legislative Assembly on Friday, announcing that the NDA government has set a target of generating 160 gigawatts of renewable energy under its Integrated Clean Energy Policy.

The minister said the government is focusing on long-term sustainability, expansion of renewable energy and protection of consumer interests. He credited Chief Minister N. Chandrababu Naidu with pioneering power sector reforms in the country, stating that Andhra Pradesh was made power-surplus within six months of assuming office in 2014, with renewable capacity rising to 7 GW between 2014 and 2019.

Ravi Kumar said the state currently has an installed capacity of 21,457 MW, of which 37 per cent is from renewable sources. He noted that APGENCO recently achieved a record generation of 6,000 MW. He said tariffs were reduced by 13 paise through a true-down, while power purchase costs fell from ₹7.71 to ₹6.35 per unit, resulting in savings of ₹550 crore in 2024–25 and an estimated ₹340 crore in 2025–26.

He said the Budget has allocated ₹13,000 crore towards power subsidies. Free electricity is being provided to 22 lakh farmers with nine hours of assured daily supply, along with 24x7 power for all categories. Aqua farmers receive power at ₹1.50 per unit, while 20 lakh SC and ST households are supplied 200 units free of cost. Subsidies also cover handloom and power loom workers, washermen and salons. Under the PM Surya Ghar scheme, 100 per cent subsidy is being extended to SC and ST beneficiaries.

The minister said grid-strengthening works being taken up by APTRANSCO, including 378 EHT substations and 33,000 km of transmission lines, along with a proposed 2,000 MW battery storage project, would ensure long-term energy security for the state.