The Hindu Business Line : AP Govt steps up efforts to streamline power sector

IN A significant development to streamline the power sector, the Andhra Pradesh Government on Sunday announced a major move to crackdown on illegal farm sector power connections and decided to invoke the provisions of the recently-enacted legislation that seeks to protect illegal tapping of ground water through new borewells and regulates the functioning of drilling rigs.

The Chief Minister, Dr Y.S. Rajashekhara Reddy, said that the State Government decided to crackdown on about 3.5 lakh illegal borewells which have come in the State lately as this would create problems to the existing users and also put substantial pressure on the State power grid.

Addressing a press conference in the State Secretariat after reviewing the functioning of the power sector with APTransco and APGenco and various distribution companies, Dr Reddy said that with the onset of monsoons, a survey conducted by the Government had revealed that there has been sudden spurt in borewells in the State. This has also meant that the demand for energy has gone up significantly this year when compared to the corresponding period last year.

The energy demand has gone up to about 150 million units a day, an increase of about 26 per cent over last year and it is now averaging about 150 MUs. This has put tremendous pressure on the power system calling for drastic measures to crackdown on illegal bore wells.

Unless this was handled, the 23.37 lakh (as on July 31,2004) authorised agricultural users and other sectors of power users would be impacted as there is potential of system collapse. Out of 150 MUs, it is estimated that about 60 MUs was being taken up by agriculture sector users.

Elaborating on the Government plan to tackle this issue, Dr Reddy said that the Government was committed to the supply of free power announced earlier in the year and every effort would be made to ensure this to the farm sector. However, the decision to crackdown on illegal new connections would be necessary to protect the interest of farmers. "As a result, we plan to provide eight hours of power supply (as against promised nine hours) to farmers either in two tranches or at one go depending on what was possible. A list of legal connections would be placed in each of the sub-station by the end of this month."

With regard to new borewells, Dr Reddy said that once the provisions of the Andhra Pradesh Land, Water and Tree Conservation Act were enforced, people could tap ground water only after obtaining necessary permission with the concerned local authority. Further, every rig owner would have to register with the district collector and only then take up drilling works.

"Our recent surveys had indicated that some of the suicide deaths by the farmers were directly linked to huge amounts they raised to fund new borewells. When such farmers were confronted with failed borewells, they resorted to extreme steps. Therefore, we also plan to provide necessary insurance coverage to farmers in case of failed borewells. However, necessary permission would have to be taken before they take to new borewells," he said.

Agenda for APGenco: The Chief Minister advocated a three-point agenda to APGenco for ensuring rapid growth of the power sector in the State. After a comprehensive review of both thermal and hydel generating stations in the State, he said this would mean enhancing the power generation capacity, procuring gas linkages for various power plants and through internal efficiencies.

While observing that during the last six years there had been no capacity addition in respect of thermal stations, he emphasised the need to enhance the installed capacity by setting up projects at Ramagundem (1000 MW), Kothagudem (1000 MW), Vemagiri gas-based plant (1500 MW) and Hyderabad (Shankarpalli) gas based power plant (1400 MW).

Directing APGenco to take up gas linkages with GAIL and Reliance for the proposed gas-based power projects, Dr Reddy instructed Genco to expedite RTPP, VTPS and Bhoopalapalli plants.

APGenco stated that it had swapped high cost loans of Rs 4,116 crore with the average rate of interest of 8.2 per cent, which had resulted in savings of about Rs 188 crore per annum. With better reservoir levels, APGenco expects to generate more power from hydel plants and possibly save about Rs 400 crore.

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