Andhra Pradesh Chief Minister N. Chandrababu Naidu has unveiled a scathing critique of the previous YSR Congress Party government’s management of the state’s power sector, revealing staggering financial burdens and policy missteps.
In a detailed white paper released on Tuesday, Naidu accused the former administration of imposing an enormous financial strain, amounting to a total burden of INR 1,29,503 crore on the power sector. Naidu highlighted that during the tenure of the Jagan Mohan Reddy government, the power sector accumulated a debt of INR 49,596 crore, with an additional burden of INR 47,741 crore attributed to what he described as misguided policies. The chief minister asserted that these actions significantly escalated power tariffs and surcharges, impacting consumers severely.
The white paper outlined that between 2019 and 2024, state power distribution companies saw their debts escalate from INR 62,826 crore to INR 1,12,422 crore. Naidu further pointed out that short-term borrowings of INR 10,892 crore were undertaken at a high interest rate of 10.11%, exacerbating financial pressures on the sector. Additionally, costs related to delayed thermal power plant commissions and short-term power purchases contributed to the fiscal strain. Under the previous regime, average power tariffs surged from INR 3.87 per unit to INR 5.83 per unit, a move Naidu attributed to tariff hikes and various surcharges imposed on consumers.
The chief minister criticized proposals for further tariff increases, which he claimed were aimed at addressing accumulated financial deficits. Looking ahead, Naidu emphasized the need for comprehensive power sector reforms to restore investor confidence and stabilize operations. He stressed the importance of ensuring uninterrupted power supply at affordable rates while addressing legacy financial losses. The white paper also underscored delays in critical infrastructure projects such as the Polavaram Hydro Electric Project, which incurred additional expenditures amounting to INR 4,737 crore due to commissioning delays.
