The Hindu Business Line : It's free power for all AP farmers — First decision of CM after swearing-in

THE leader of the Congress Legislature Party, Dr Y.S. Rajasekhara Reddy, was sworn in as the new Chief Minister of Andhra Pradesh by the State Governor, Mr Surjit Singh Barnala, at the Lal Bahadur Stadium on Friday.

Soon after the swearing-in ceremony, the Chief Minister passed orders waiving the power tariff arrears of farmers and providing free supply of electricity to the agriculture sector, in tune with his electoral promises.

Dr Reddy said that he would form the State Cabinet within a week after the formation of the Cabinet at the Centre.

He has also indicated that the current Cabinet Secretary, Mr Mohan Kanda, would continue in the same post while the Principal Secretary (Energy), Mr Jannat Hussain, would be Principal Secretary, Chief Minister's Office.

Later, speaking to newspersons, Dr Reddy said that the one-time waiver of power tariff arrears would cost the State Exchequer Rs 1,192 crore.

On the other hand, the Transmission Commission of AP (APTransco) would incur a loss of Rs 436 crore per annum on account of free supply of power to all farmers irrespective of the extent of their land holdings.

The State Government would compensate the loss incurred by APTransco in this regard.

Hereafter, he said, the electricity department would collect only Rs 20 per month as service charges per agricultural connection.

The collection of service charges would be continued so as to establish relationship between the farmers and the department officials.

With regard to metering of the power consumed by the agricultural sector, as per the new Electricity Act, farmers have to install meters in two years.

The Electricity Regulatory Commission, however, could extend this time period.

Alternatively, meters could be installed at the transformer level for assessing the quantum of power consumed by the farm sector.

Stating that the power utilities in the State have incurred a loss of Rs 17,000 crore in the past nine years, he said that the Government would review the power purchase agreements entered into by APTransco with the private sector power producers.

He added that the power utility could be paying "hundreds of crores of rupees in excess" to the private power producers.

Though his Government's emphasis would be on agriculture and rural development, Dr Reddy said that it would also give a push to the IT sector "which is not making enough strides in the State".

He added that IT-related exports from the State last year were worth only Rs 3,000 crore as against Rs 17,000 crore in Karnataka.

To a question, he said that he had instructed the police to create a congenial atmosphere for holding talks with the outlawed People's War (PW).

He also wanted the PW to reciprocate by not resorting to provocative acts.

On whether the ban on the PW would be lifted by the Government, he said that the ban would automatically expire by July.

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