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By spot purchase of power on exchanges, AP saves ₹700 crore

Our Bureau Hyderabad | Updated on June 26, 2020 Published on June 26, 2020

File photo   -  Bloomberg

Taking advantage of lower than normal demand during the Covid lockdown, Andhra Pradesh has saved over ₹700 crore by purchase of power from spot exchanges with the average price working out to ₹1.63 to ₹2.80 per unit.

In addition, the utilities saved ₹4,783.23 crore by reducing cost of service from ₹48,110.79 crore in 2018-19 to ₹43,327.56 crore in FY2019-20 through various efficiency measures.

In a meeting at the Secretariat on Friday, Energy Secretary Srikant Nagulapalli said, “Andhra Pradesh is an example for other States in sourcing low cost power. Providing 24x7 power without interruptions has been dominating the agenda of other States so far. Now they are looking at sourcing low cost power.”

The State is working towards supplying power at lower prices as this will benefit consumers across segments and boost industrial and economic development.

As a part of this thinking, the State government is extending a subsidy of ₹11,311.7 crore for 2020-21 and has allocated ₹8,353.58 crore for providing 9-hours free power during day time to all 18.5 lakh agriculture services. And, for the first time, it has agreed to pay ₹1,707.05 crore towards domestic subsidy.

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Published on June 26, 2020
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