From Our Correspondent
Amaravati: Andhra Pradesh will not increase electricity tariffs for the next three years despite mounting financial pressures on the power sector, Energy Minister Gottipati Ravi Kumar announced on Tuesday, positioning the decision as a key consumer relief measure while outlining an ambitious roadmap for renewable energy investments and power sector reforms.
Addressing a press conference, the minister said the coalition government has decided to shield consumers from the burden of power sector liabilities, including ₹4,498 crore in true-up charges accumulated during the previous administration.
“The government has taken a conscious decision not to pass these costs on to consumers. There will not be a single rupee increase in electricity tariffs over the next three years,” he said.
The minister claimed Andhra Pradesh had become the first state in the country to reduce electricity tariffs, cutting power costs by 13.5 paise per unit. He said tariffs for small and medium enterprises had been reduced from ₹12.25 per unit to ₹9.95 per unit, providing relief to businesses and encouraging industrial growth.
Ravi Kumar highlighted a series of welfare measures aimed at different consumer groups. These include free power up to 200 units for SC and ST households, handloom workers, washermen, goldsmiths and salon operators. Powerloom operators are eligible for free electricity up to 500 units, while aqua farmers continue to receive electricity at a subsidised rate of ₹1.50 per unit.
The minister said the government has simultaneously focused on improving operational efficiency within the power sector. Power procurement costs have been reduced from ₹5.42 per unit to ₹4.90 per unit, resulting in savings of 52 paise per unit. Transmission and distribution losses have also declined from 12.5 per cent to 9.99 per cent.
Financial reforms have helped improve the credit profile of power distribution companies, enabling them to secure loans at lower interest rates. According to the minister, borrowing costs have fallen from 11.8 per cent to 9.5 per cent, reducing the annual financial burden by around ₹500 crore.
Looking ahead, the government is placing renewable energy at the centre of its long-term growth strategy. Andhra Pradesh has set a target of creating 160 GW of renewable energy capacity and attracting investments worth ₹10 lakh crore in the green energy sector.
The minister said the proposed investments could generate employment opportunities for nearly 7.5 lakh youth. Memorandums of Understanding covering projects worth approximately ₹6 lakh crore have already been signed.
As part of the state’s clean energy transition, the government aims to install 20 lakh rooftop solar connections under the Centre’s PM Surya Ghar scheme. It has also submitted proposals to the Union government for a ₹22,000-crore Green Energy Corridor project to strengthen transmission infrastructure for renewable power.
Ravi Kumar used the occasion to launch a sharp attack on the previous YSRCP government, alleging that electricity tariffs were increased nine times between 2019 and 2024, imposing an additional burden of ₹32,000 crore on consumers.
He claimed the debt of power utilities rose to ₹49,596 crore during the period, while poor management resulted in cumulative losses of ₹1.29 lakh crore. Delays in projects such as the Polavaram Hydro Electric Project, Krishnapatnam Thermal Power Station and VTPS expansion had also imposed thousands of crores in additional costs on the sector, he alleged.
The minister said the government’s objective is to balance consumer welfare with financial sustainability while transforming Andhra Pradesh into a leading renewable energy hub.