According to reports, the Andhra Pradesh Government will provide Rs 4,071 crore equity to AP Genco projects coming up at Vijayawada, Kothagudem and Krishnapatnam thermal power stations.
Addressing the inaugural session of three-day seminar on “Commercial Aspects Of Managing Power Utilities in Southern States,” M. Sahoo, Principal Secretary, Energy, Andhra Pradesh, said that the State Government is also providing annual subsidy of Rs 5,000 crore to power utilities.
He said the State was making efforts to provide satisfactory power supply to all categories of consumers by strengthening the power sector both financially and technically.
Besides making all-out efforts to optimise the generation, he said power utilities have finalised tenders and entered into agreements with various power producers for procurement of power around 1,300 MW per month till May. This is part of the short-term measures.
The discoms are in the process of purchasing of 2,000 MW from June 2013 to June 2016 by forecasting the future requirements of the electricity consumers, he added.
The State has been experiencing severe strain in meeting power demand which had increased abnormally and crossed 307 MUs per day in 2012 as against 190 MUs in 2007-08.
He described the current situation as a fuel crisis and not power crisis.
Except for eastern States, most other States are facing shortage of fuel as well as financial crisis, he said.
He said it is the collective responsibility of the Government, regulator, power utilities and public/consumers for making the power sector financially and operationally viable.