AP to achieve it by 2016

Power to all is a premise, people dream for it. And Narendra Modi government is trying to achieve it, a welcoming effort. But the question here is: Is it possible to realise the dream? More so, when most of the states are experiencing the power deficit? And, there is no difference in Andhra Pradesh.

The power woes of the state are still far from over. The state is still dependent on purchased power and not on the additional power generated. Now, to achieve the said target of ‘power for all’, though partially, the state government has to buy power from other friendly states including BJP led states.

As announced, the scheme of ‘power for all’ (PFA) will be implemented in phases. Under first phase only two municipal corporations, nine municipalities and 39 mandals are expected to get 24x7 power supply, and later by September 2016, the entire state will be covered under the scheme.

Of course, the AP Chief Minister Chandrababu Naidu is known for his reforms in the power sector during his tenure as united AP’s chief minister. He knows, surely, how to reduce the pilferages and optimal use of power, but unless the new power generation units become operational (the government signed agreements with NTPC for 4,000 MW etc.) it may be difficult for the government to supply power 24/7.

Devoid of Hyderabad, for Naidu, power is only USP and he will showcase it before the global investors. As he rightly put it, “Governance and Power are the only resources available to set AP back on track”.

But in reality, as per the AP government records, as on 2 June 2014, the state had a power deficit of 22 million units, which almost equal to that of Telangana with a deficit of 25 million units.

Even as the officials claim, besides the thermal and hydel power, the Andhra Pradesh had signed PPAs to the tune of 3,031 MW of gas-based power projects owned by private sector and insists that these companies will start function once gas is supplied to them, may be at a later date. In percentage terms, the Andhra has 69 per cent of thermal capacity, which is running at present, and 31.46 per cent of Hydel power capacity. Despite all, the state had bought an additional power to the tune of 2,000 MW on a short-term basis during peak demand period and another 2400 MW on long term basis.

Power for all to cost Rs.54,332 cr
As per the document, the Andhra Pradesh government requires about Rs 54,332 crore to achieve power for all a reality, while the state will get central assistance to the tune of Rs 15,718 crore. The investment is spread over five years.

Interestingly, the programme is mainly targets the investor in manufacturing sectors in the proposed IT corridor at Kakinada and Nellore-Chitoor corridor.

In order to cater to these corridors, the government plans to focus on non-conventional power by way of solar and wind power in Rayalaseema districts. Accordingly, the government is working out a plan to set up a solar power park at Anantapur, Kadapa and Kurnool districts with an installed capacity of 2,500 MW.

By the end of the five years, the state is expected to have over 9,000 MW power generated through renewable energy, thus making Andhra Pradesh as a solar power hub for entire country, the state aspires.

Out of all these, the NTPC agreed to set up 1,000 MW solar power park in Anantapur. Besides, the power major is also agreed to set up 4,000 MW thermal power unit in Visakhapatnam. The state government has readily agreed to part with 1,200 acres of land at Pudimadaka in Vishakhapatnam.