Debt burden on DISCOMs being reduced by promoting green energy: AP Minister

The minister in video mode participated in a key meeting organised by the Union power ministry in Mumbai on Friday to discuss strategies for strengthening DISCOMs across various states.

The meeting was attended by minister of state for power Shripad Yesso Naik, Maharashtra chief minister Devendra Fadnavis and power ministers from four other states.

The discussions centered on revitalizing the debt-ridden DISCOMs, minimizing additional losses and improving debt recovery mechanisms from central and state governments.

Ravi Kumar said, “DISCOMs are becoming financially stable. Andhra Pradeshwill effectively leverage central schemes such as the PM Suryagarh and PM Kusum to alleviate financial pressure on DISCOMs.”

He urged the central Government to increase the state’s battery storage capacity from 1,000mw to 2,000mw, as was previously requested. He also called for an enhancement in the grant provided for the Green Energy Corridor and an increase in the number of sanctioned pump sets from one lakh to 4.5 lakh, citing the urgent need for additional support in the newly formed state.

Ravi Kumar also cited the financial distress faced by DISCOMs during the term of the previous state government. He said, “Under the leadership of Jagan Mohan Reddy, DISCOMs were burdened with an additional `50,000 crore in debt. The debt burden rose from `17,000 crore to `67,000 crore over the last five years.”

He said that in the last five years, subsidies due to DISCOMs were not paid on time, leading to financial instability. However, the present state government has taken decisive steps to revive DISCOMs by clearing outstanding dues of Rs 11,352 crore.