CM Jagan’s power reforms aim at Rs. 20,000 Cr loans


The AP Government’s all-out efforts to introduce reforms in the power distribution sector are solely intended to get clearance for making an additional Rs. 20,000 Cr loans. This would be possible only when the smart meters are fixed on agriculture connections to make sure that electricity distribution companies get their revenues without fail. The Central Government has put a condition for mandatorily implementing power reforms in order to give relaxations under the Fiscal Responsibility and Budget Management Act to go for higher borrowings.

As of now, Andhra Pradesh like all other states can borrow just up to 3 per cent of its Gross State Domestic Product as per the FRBM Act. But in view of the Covid-induced financial stress, the Centre has agreed to increase borrowings limit by another 0.5 per cent. At the same time, the Centre put some conditions for the State if they want the borrowings limit to be increased from 3.5 per cent to 5 per cent. These conditions included power distribution reforms, universalisation of ration cards, urban local bodies revenues strengthening and better Ease of Doing Business performance.

Of these conditions, the power reforms are loaded with political consequences. Many states including Tamil Nadu objected to the conditions. But Andhra Pradesh came forward with a Direct Cash Transfer scheme to credit monthly bills amounts into the farmers’ accounts. This way, the Discoms can directly redeem their bills from the farmers’ dedicated accounts.

However, the question remains whether the Government would sincerely implement this once its purpose was served. No doubt, the farmers would lose their right to free power scheme once anything goes amiss.

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  1. Dear Shri. Y.S. Jagan Mohan Reddy [Chief Minister of AP],

    The policy of metering agriculture pumps is a very bad policy
    It is prelude to privatizing power sector by BJP Government at the Centre
    AP Government wants to support this anti-peoples policy?

    1. Fraud in electricity distribution: During a discussing on the new Electricity Act in 2001 in Osmania University, I asked MD of Electricity Board [former chairman of electricity board also was present] Mr. Prasad: Why there are huge losses in power distribution? He replied with an example: A linemen used to provide illegal connections and stayed at the same place for more than 7 years, when we found this and transferred him from there, the union came to attack him in the electricity board office – he left to USA on study leave. This is more so in agriculture sector.
    Transformers level meters: Let me present a case during TDP/Chandrababu’s rule: A report was published in a daily newspaper with the heading “Transco’s lies on Agriculture power consumption” based on the survey carried out on the order of Andhra Pradesh Electricity Regulatory Commission to Transco, Transco assigned the job to AP Productivity Council. AP Government allocated funds to Transco for 10,000 million units for 9 hours power supply. The survey found the total power consumption was 4,751 million units only. That is 4.59 hours only power was supplied as against 9 hours. The survey was carried out by fixing meters in the four Distribution Companies areas of 6,367 transformers for one month and recorded day and night continuously — this covered 4 to 7% of 19.5 lakh pumps. Here, the money through illegal sale of power went in to the pockets of all those involved in this fraud. This is going on since 1983. The same was repeated after Dr. YSR death [this issue was discussed in Inews during kirankumar as CM].

    2. Free Power to Agriculture: I presented several articles relating to power sector including on free power in print media [example in Vaartha, 4-11-2002]. On the request of CLP leader Dr. YSR, I prepared a black paper on agriculture to counter white paper of TDP/Chandrababu – this was released on 15-2-2001 in press Gallery of CLP in which all MLAs participated [newspapers published this on its 16-2-2001 editions]. In this I proposed few issues, namely completion of irrigation projects to increase area under irrigation; providing free power with no voltage fluctuations; etc. – the logic in my suggestion of free power was that government at huge cost building dams but in the case of groundwater, farmers spending money from their pockets. In 2002, Dr. YSR impressed the Congress High Command on free power to agriculture and became 1st file to sign. Before going to Delhi, Dr. YSR sent me a mail asking for my input [21-10-2002]. I sent my suggestions.

    • better present verifiable facts than your opinion. It is fact that AP had 24/7 power for first time during CBN regime 1999-2004. CBN power surplus state to YSR by 2009 AP was power deficit.
      Ap achieved no1 in power reforms in 2014 to 2019 with least power loss in country. thankfully the current govt is continuing those reforms
      below is prof from power ministry website powermindotnicdotin/sites/default/files/uploads/joint_initiative_of_govt_of_india_and_andhrapradesh_0.pdf
      instead presenting /arguing facts you are trying to show yourself which absolutely not needed here

      • You are not correct. I myself faced the problem during 1999-2004. I used to produce BPD seed to AP Seed Corporation. Motors and transformers burnt with voltage fluctuation and giving one phase current instead of three phase current. We paid money for even for the repair of transformers — collected Rs. 500 from each farmer and took the transformer to the repair and got it installed. But, I lost my crop quality with dry period. AP Seed Corporation rejected the seed. I lost few lakhs of rupees. This is same with all farmers in this zone. On this I personally met the power minister Kothapally Subbaraidu. He gave good coffee and did not do any thing. You may not be remembering the incident near Telugu Talli flyover near Secretariat. Please read daily news papers of that period, you get the correct picture. About 2014-19, I remember Babu cutting the ribbon of the power plant at Krishnapatnam, which was allocated during Dr. YSR time. Whatever I wrote, I got copies from the news papers.


        • you are wrong not me. i am Giving proofs unlike your stories which anyone can create.
          what is telling are stories which are no use. when see performance of a school. we see average of all students in school and not. see for any decisions there are pros and cons you have weigh if pros are more than cons you cann’t cherry pick one or two pros or cons that suit you.

          • Chandrababu made agreements with private companies for gas based power plants [Lagadapati is one of them]. As Babu could not provide the gas to those companies, government paid thousands of crores. After 2004 Dr. YSR, negotiated with those companies stopped the wasteful expenditure. You just look at these and then tell the readers, is it correct or not?


          • I will prove you wrong with evidence again during rajasekhar reddy period many GAS based power projects like GMR vemagiri
            in 2006, Konaseema Combined Cycle Power Plant commissioned in 2010 were done


          • You agreed with me, is it not so?

            Dr.YSR initiated projects with raw material but Chandrababu failed in this and started pumping public money to those friendly power companies, a huge burden.

            Dr. YSR initiated to have oil & gas production in KG basin by AP government. He was successful in the bids. Just after this he was killed in accidental accident. The three committees failed to answer six questions posed by media till to date — even this I brought to the notice of the then PM, Dr. Manmohan Singh.


          • your not standing on your word.
            first you said YSR regime didn’t start gas based projects
            your are a big big liar Just throwing baseless allegations.the whole KG basin was during congress power and TDP has nothing to do. and one more fact is KG basin is not having gas as initially calculated that is the reason
            stop creating stories and present verifiable facts
            It is on record that YSR gave mining lease to son-in law. it is on record that YSR gave mining leases to Gali brothers at at very very low price even court
            below is proof

          • You are trying to prove something that is not true. You just refer old records — Gali got mining lease from Chandrababu and as it was not economical he surrendered part of the land to Chandrababu government. The case is not related to lease but it is related to illegal use from neighbouring mines. I did not say, DR. YSR regime didn’t start gas based projects but I said Chandrababu gave the projects and failed to provide gas to those projects and started paying huge sum to the industry as compensation.


          • i am proving by facts. yourself agreed that during CBN govt got more revenue in leasing. the above mention projects even during YSR time also suffered due to gas shortage.
            And these are private companies and not public companies so public money lost is the most absurd argument.
            what about YSR giving leasing to son-inlaw?

          • About son-in-law, already enquired and find nothing.

            Dr. YSR got a share in power projects from the centre to improve the power availability to free power to agriculture. They are producing power.There is no such loss to government. In fact Chandrababu cutt the ribbon for Subbarami Reddy power project in Krishnapatnam.
            About gas shortage — RIL took the gas to Gujarat. Because of this only Dr. YSR government participated in KG Basin tenders and got allocation. RIL was close friend of Chandrababu. When I was a member of CFE committee, we rejected the use of naphatha in place of gas as it produces high pollution.


          • below is proof of YSR son-inlaw lease cancellation by. kiran kumar reddy cancel mining lease of anil kumar

            please stop bluffing

            there many projects like vemagiri (2006) even before KG basin was found so please stop all these stories and put verfiable facts

          • Show those to Chandrababu — see articles in daily news papers including yellow media. Let me give an example, to show how pias is your mentor:

            Chandrababu made MoU with Ramky on Pharma City just when he was acting CM. He gave 2143 acres on 33-year lease. Dr. YSR gave around 20 acres on 33-year lease to two pharma companies, who were part of Pharma City in Parwada. CBI found the later as quid-pro-co and the former pios.


          • why are you jumping topics? because you have no answer. remember YSR made multiple CBI enquiries on CBN and CBI which gave clean chit.
            Also your frustration is visible when mentioned “show how pias is your mentor”

            no body is my mentor i smart enough to analyse data myself.
            trying to act deaf/blind on ysr leasing mines to son-inlaw
            by the way NDTV is favourable to jagan and ysr ( the proof i gave)

  2. Also, Dr. YSR initiated building power projects under private sector. TDP/Chandrababu graciously cut the ribbon after 2014.

    3. Fixing meters to agriculture pump sets: This is very bad policy. You are trapped by BJP rulers at the centre to privatise the power sector. Already BJP rulers at the centre have been pushing the major sectors in to private. Once it goes in to private sector, the state governments have no control. They will raise the price at their will and pleasure. Agriculture will be severely affected as already meters were fixed; the farmer has to pay the new price.
    We have seen, during TDP/Chandrabu regime the solar & wind power purchase agreements with the private players, which became white elephant to AP Government similar to his earlier gas based power plants which Dr. YSR corrected and saved from huge losses. Now YSRCP tried to correct the new solar/wind power purchase agreements but BJP Government at the centre twisting the arms of AP government.
    Do you want part of privatizing the power sector game of BJP Government at the Centre? It looks on paper it is free power with no burden on meters but government has to spend huge sum on meters to benefit meter manufacturers and you will be in trouble, opposition automatically say you got percentages on them. Also cost of fixing, maintenance, meter reading, etc. cost also state government has to pay. This is another white elephant. Already your government is spending thousands of crores on worthless populistic issues instead of developing an employment generation schemes. It appears you are in a hurry to do all in one year without a second thought or advice from others. Already your team is under corruption stories.
    This can be easily achieved by fixing meters at transformers level by which the cost will drastically come down and also brings down malpractices by the operators.
    People not voted for your victory for sub-serving the centre’s vested interests – in AP people rejected BJP. Think carefully before entering in to Centre’s trap!!!
    BJP Government at the Centre is following in the foot-steps of Chandrababu/TDP since his earlier stint as CM. They were and are fond of GM food crops entry in to India. Now they cleared for the entry. We have seen now the arm twisting tactics on Mumbai Airport. Be careful!!!

    Dr. S. Jeevananda Reddy


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