Rs 3300 Cr Loan Released for Andhra Pradesh Power Sector

The Central Government has ordered the release of Rs 3300 crore loan to the Andhra Pradesh power sector under the second tranche of the Atmanirbhar Loan.

The Central Government has announced that it has ordered the release of Rs 3300 crore loan to the Andhra Pradesh power sector. The loan will fall under the second tranche of the Atmanirbhar Loan.

The decision was announced by Union Minister for Power and New & Renewable Energy RK Singh during his meeting with Andhra Pradesh energy secretary Srikant Nagulapalli, AP Genco G Saiprasad in New Delhi. The power minister directed officials to release the amount to the state during the meeting.

It has been reported that when the AP officials explained the poor financial status of AP Discoms due to various reasons, the minister assured that the Union government would provide all support for easing the excess financial burden on AP Discoms. The officials told the minister that the state government had already sanctioned a total amount of around Rs 17,904 crore in 2019-20 towards clearing pending tariff subsidy dues and other charges. The government would also bear a subsidy burden of Rs 11,000 crore for 2020- 21.

The centre also assured a 30 percent subsidy on 10,000 MW solar project for farmer’s free power to be developed in the state. The state government has proposed the solar power project aimed at ensuring free power supply to the agriculture sector for the next 30 years. The state government has recently invited tenders for the project. This was one of the major developments in the meeting with the Union minister.

Earlier this month, the state government had decided to go ahead with the Direct Benefit Transfer (DBT) of Dr. YSRC free power scheme to farmers, despite heavy criticism from the opposition parties.

Energy minister Balineni Srinivas Reddy had reportedly directed the officials of his department to prepare an action plan by involving farmers to roll out the scheme. As reported by ET, the scheme will be launched in the Srikakulam district on a pilot basis. The state government is planning to roll out the scheme across the state from April 1, 2021.