The Hindu Business Line : AP plans no hike in power tariff for 5 years

Hyderabad, Oct. 7 The Andhra Pradesh Government plans not to increase power tariff for the next five years without, however, compromising the profitability of Andhra Pradesh Generation and Transmission corporations.

“APGenco and Transco provided a model to run public-sector enterprises on profit path. An action plan should be prepared to sustain no further hike in power tariff without losing profitability,” the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, told power sector officials at a review meeting here on Sunday.

“There has been no power tariff hike in the State for last three years. This should be continued for next five years and Andhra Pradesh will set a record for not hiking power tariff in eight years in a row,” he said. Briefing the Chief Minister on the progress made by the State’s power sector, Mr D. Prabhakar Rao, Director (Finance), APGenco said the corporation could save Rs 225 crore due to reduction of interest rates on loans by Power Finance Corporation. Public-sector banks had extended project loans to APGenco at 10.5 per cent which resulted in Rs 35 crore savings.

Due to improved performance of hydel power projects, power could be supplied without tariff hike, he added.

Mr G. Ramakrishna Reddy, Director (Finance) APTransco said transmission and distribution losses were contained significantly for the past three years. “These losses had come down to 19.8 per cent in 2006-07 from 22.3 per cent in 2003-04,” he said.

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