Jagan government to bear annual Rs 10,135.22 crore for free power to people in AP

VIJAYAWADA: Energy Minister Peddireddi Ramachandra Reddy stated on Sunday that the Jagan-led state government would bear a burden of Rs 10,135.22 crore for financial year 2023-24 towards subsidy for providing 9 hours’ free power to agriculture and by way of concessions to various classes of consumers.

There will be no tariff hike to any category/class of consumers in AP, except for energy-intensive industries, he said.

The minister said the government extended free power to SC/ST families upto 200 units of electricity and it is also bearing the burden of Rs 7641.85 crore towards free power to agriculture.

Addressing a review meeting, the minister reaffirmed that the government was committed to public wellbeing and effectively implementing the welfare programmes under the prestigious Navaratnalu scheme in the AP power sector. “This is benefitting lakhs of families,” he said.

He announced that the state government was committed to bridge the total revenue gap determined by the AP electricity regulatory commission for FY 2023-24, but there would be no tariff hike to any category/class of consumers except for energy intensive industries.

“There will be no increase in electricity charges for all classes of consumers,” he reiterated.

Minister Reddy explained that apart from free power to SC/ST consumers upto 200 units per month, “the government is also providing free/subsidized power to the most-backward classes (MBC), dhobighats, laundries, goldsmith workers, salons, rolled-gold workers and handloom sector workforce, sugar cane
crushers, rural horticulture nurseries etc.”

He explained that “the government is bearing a burden of '7641.85 crore towards free power to agriculture and ' 1206.20 crore for the aquaculture sector and '1238.30 crore to extend free/subsidised power to SC, ST, MBCs, dhobighats and other categories of consumers.”

The minister said that in the larger interests of power looms consumers and flour mills upto 10 HP, the APERTC exempted kVAH billing to these consumers, which was a big boon.

Special chief secretary K. Vijayanand said the power utilities have been taking all necessary steps to supply uninterrupted power during summer as the demand for electricity was steadily increasing.