Financial Daily from THE HINDU group of publications Friday, Feb 24, 2006 |
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Agri-Biz & Commodities
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Power States - Andhra Pradesh Govt priority for lift irrigation AP to buy 300 MW Central power Our Bureau
Hyderabad , Feb. 23 With two-hour power cut a certainty to tide over the demand supply mismatch due to increase in power off-take due to farm sector consumption, the Andhra Pradesh Government is set to arrange for purchase of about 300 MW from Central and other generating stations. The State Energy Minister, Mr Mohd Ali Shabber, today said that though there is a shortage all over the country, with difficulty the State utilities have tied up for purchase of 300 MW of power for six hours during the night for March. This will call for additional financial commitment of about Rs 23 crore during the month. Reiterating the Government commitment to the agriculture sector, the Minister assured that standing crops during rabi 2005-2006 will be protected by all means and this is one reason, the State had to impose two-hour power supply cut. However, as per the modified free power policy and as per tariff order 2005-2006, farmers should provide capacitor of adequate ratings by March 2006. The installation of capacitors will benefit farmers as it will ensure improved voltages and prevent burning of motors. The cuts have been imposed as the demand has spurted significantly due to farm sector pump requirements. During the rabi season there has been unprecedented demand, which has peaked to 167 million units (mu) as on February 18. This is 11.3 per cent more than the 150.01 mu supplied on the same day last year. The energy sales during January to March increased from 3,377 mu in 2002-2003 to 3,798 mu in 2004-2005 and during the current year the overall consumption has shot up to 5,000 mu. The Minister said the Government is according priority to lift irrigation and there are 2,404 lift irrigation schemes (348 high tension and 2,056 low tension) in the State. Supply is being released for 268 lift irrigation schemes during 2005-2006 and dedicated feeders provided to 213 high tension schemes to ensure 16 hours of supply. Of the total investments of Rs 2,013 crore by AP Transco and Discoms during 2005-2006, Rs 1,430 crore is being invested in rural areas to ensure quality and reliable power supply to agricultural and rural consumers. Referring to some of the initiatives taken by the State, the Minister said the State has waived agricultural arrears amounting to Rs 1,254 crore accumulated up to March 2004, thereby providing substantial relief to the farmers. The total subsidy provided to the agriculture sector during 2004-2005 was Rs 2,024 crore and Rs 2,062 crore in 2005-2006.
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