AP govt to spend `10,135 cr towards power subsidies in FY24
Extending nine-hour free power supply to agriculture consumers and concessions to SC, ST, MBC and aqua farmers
image for illustrative purpose
Vijayawada: Andhra Pradesh Power Minister Peddireddy Ramachandra Reddy on Sunday said the State Government has agreed to absorb Rs 10,135.22 crore for FY 2023-24 as subsidy for providing nine-hour free power supply to agriculture consumers and concessions extended to various classes of consumers like SC, ST, most backward classes (MBC) and aqua farmers and subsidy for domestic consumers as well.
The government said it will bear the burden of Rs 7,641.85 crore towards free power to agriculture and Rs 1206.20 crore for aquaculture sector and Rs 1238.30 crore to extend free/subsidised power to SC, ST, MBCs, dhobi ghats and other categories of consumers.
The State Government has committed to bridge the total revenue gap determined by AP Electricity Regulatory Commission (APERC) for FY 2023-24 with no tariff hike to any category/class of consumers except for energy intensive industries. As per the promise made by the government, there will be no increase in electricity charges for all classes of consumers.
These unaltered electricity tariff rates are designed to appease all categories of consumers to make people happy. The State Government is extending free power to SC/ST consumers who have consumed electricity below 200 units per month. The government has also provided free/subsidised power to MBCs, dhobi ghats, laundries, goldsmith workers, salons, rold gold workers and handloom workers, sugar cane crushers and rural horticulture nurseries, the Minister said.
Only for industries like ferro alloy which consumes a lot of electricity, Rs 475/kVA demand charges are levied on par with general industries. There are no demand charges for these ferro alloy industries till now. Energy charges are also 50 paise less per unit compared to conventional industries and there are no peak demand charges.
Speaking at a meeting on virtual mode with AP power utilities, Peddireddy said that the State Government has laid special focus on the welfare of people and implemented the Navaratnalu scheme in the power sector. The government is implementing the ambitious scheme of free power to agriculture and weaker sections and others as part of providing welfare to them.
The Minister said the government has strongly committed to empower the power sector through which the people get empowered and every step of government is absolutely aimed at transforming the sector into people friendly sector and benefit each and every family in the State. The government has almost achieved100 per cent success of the welfare schemes in the power sector, he said.
As power is the fuel for the economic growth engine of the State and key for welfare of people, the YSRCP Government is giving utmost priority for strengthening the sector. The objective of the government is that every family, every domestic, commercial and industrial consumer shall get quality, reliable and affordable 24x7 hours power supply, the Minister said.
