AP CM Calls for Tariff Cut, Strengthening of Discom Finances

Vijayawada: Chief Minister N. Chandrababu Naidu has asked officials to try for a reduction in power purchase costs and bring down the per-unit electricity procurement price to Rs 4.

However, the financial burden thereof should not fall on consumers, he said.

Reviewing the power sector performance here on Tuesday, the chief minister stressed the need for a comprehensive strategy to clear the mounting debts of power utilities without hiking tariffs.

Energy Minister Gottipati Ravi and senior officials were present. The officials briefed him on steps being implemented to reduce procurement costs by 2028–29 through reforms across various segments so as to bring down the burden by Rs 1.32 per unit.

Efforts, they said, are under way to reduce the purchase cost to Rs 4.10 per unit, to which the CM said it should be lowered to Rs 4.

Highlighting the efforts at fiscal prudence, officials said efficient management of power utilities had resulted in a savings of Rs 339 crore for the 2025–26 financial year. Naidu asked them to scale up such efforts and adopt innovative technologies to enhance efficiency and reduce wastage.

Recalling the earlier reforms he introduced in the undivided state, Naidu said bold decisions in the power sector had yielded long-term benefits for consumers. AP, he said, was among the first in the country to introduce energy auditing. He emphasised that the sector was undergoing rapid transformation globally, with a clear shift towards green energy.

Naidu underscored the importance of renewable energy initiatives, urging officials to promote rooftop solar generation and expand the reach of the PM Surya Ghar scheme. He also called for greater awareness among farmers on utilising the PM Kusum scheme for agricultural pump sets.

AP, he said, was already at the forefront in solar energy in south India and should aim to secure the top position nationally.

The Chief Minister stressed the need for integrating solar power with pumped storage projects, wind energy and battery energy storage systems to build a resilient energy ecosystem. Such forward-looking policies had attracted major investments, including data centres by global firms like Google, he said.

Calling for long-term institutional development, Naidu proposed the establishment of an Energy University to promote research, innovation and technological advancement in the sector. He suggested strengthening the Centre of Excellence for Energy Transition and creating an incubation fund to support startups with innovative ideas, including the provision of margin money.

He urged power utilities to evolve into consultancy providers for other states and focus on financial strengthening. “Debts of power utilities have become a major burden. Prepare plans to clear them without increasing tariffs,” he said, adding that measures like avoiding true-up charges and implementing a 13-paise true-down had provided relief to consumers.