VIJAYAWADA: Chief Minister N Chandrababu Naidu on Thursday indicated that the agreement with the Solar Energy Corporation of India (SECI) to procure 7,000 MW solar power for 25 years at Rs 2.49 per unit would be honoured.
During a short discussion on the energy sector in the Assembly, Naidu said the SECI agreement became a liability. “However, as the deal was signed, any cancellation led to penalties and loss of credibility, yet I won’t use these as excuses to evade responsibility. I will ensure the State becomes surplus in power sector by utilising every opportunity available,” he said.
He elaborated on the cancellation of Power Purchase Agreements (PPAs) during the YSRCP regime, which created distrust among the potential investors at the international level. During 2019-24, the mismanagement pushed the energy sector into crisis. PPAs were cancelled arbitrarily, leading to legal battles.
Even at Davos, discussions were held on Andhra Pradesh’s policy failures. “Due to these wrong decisions, the High Court ordered the government to pay Rs 9,000 crore in penalties. If the previous government had honoured the PPAs, these issues wouldn’t have arisen,” Naidu said, and added that the ego of a single person cost the State exchequer Rs 9,000 crore.
He described the five years under the YS Jagan Mohan Reddy government as dark days for the State. He contrasted this with his administration’s swift action, claiming that in just nine months since taking office, his government has revitalised the devastated sector.
He elaborated on the legacy of power sector reforms under the TDP, which he said pioneered India’s first energy overhaul in 1998, making Andhra Pradesh a power surplus State by 2004.
However, he lamented that these gains were undone by subsequent regimes, including a 17.6% power deficit in 2012-13 under Jagan’s predecessors, far exceeding the national average of 8.7%, the Chief Minister explained.
CM vows to lower per unit cost to Rs 4.8 from Rs 5.1
Highlighting his connection to the sector over three decades, Naidu recalled visiting fields during his 2012 padayatra, witnessing farmers’ struggles with unreliable power and burnt motors due to low voltage. After assuming power in 2014, he ensured 9 hours of daytime power supply to farmers, introduced a transparent spot billing system, and added 7,700 MW through solar and wind energy, achieving a power surplus State by 2018 without tariff hikes.
Since announcing the Clean Energy Policy, the TDP-led NDA government has secured Rs 5.19 lakh crore investments through MoUs, and will be creating 3.66 lakh jobs with a goal of Rs 10 lakh crore investments in five years. He also pledged to lower per-unit electricity cost from Rs 5.16 to Rs 4.80, honouring the promise of no tariff increase.
Naidu criticised Jagan’s tenure for nine tariff hikes, inflating power sector debts from Rs 62,826 crore to Rs 1,12,422 crore, and delays in projects like Krishnapatnam Stage-2 and Polavaram Hydro, adding Rs 1,044 crore in costs.
Current initiatives include 10,000 rooftop solar installations per constituency under PM Surya Ghar Yojana, 4 lakh solar pump sets under PM-KUSUM, and 5,000 EV charging stations in the State.
Additionally, Rs 1.12 lakh crore in renewable energy proposals for 26.26 GW have been received. Naidu vowed to steer Andhra Pradesh towards sustainable energy and economic growth, ensuring past mistakes are not repeated.
Earlier, Energy Minister Gottipati Ravi Kumar told the House that the TDP, under CM Naidu, pioneered India’s electricity reforms with the Electricity Regulatory Commission. He announced a Rs 1.85 lakh crore Green Hydrogen Hub at Pudimadaka, 500 Reliance CBG plants, and a Rs 49,000 crore Tata Renewable Energy deal for 7,000 MW.
New initiatives include a battery storage system and 55 substations. The Energy Minister reiterated that there would be no tariff hikes.
The short discussion initiated by Kimidi Kala Venkata Rao saw members Prathipati Pulla Rao, BV Jaya Nageswara Reddy, Pulaparthi Anjaneyulu, Vasantha Krishna Prasad, Yarlagadda Venkata Rao, PV Parthasarathi, Kalava Srinivasulu, and others lambasting the previous regime for wayward management of the power sector, and pushing it into distress from a surplus stage.