This distress is because of ChandraBabu’s Rule: AP Finance Minister

Vastavam web: Andhra Pradesh Finance Minister Buggana Rajendranath Reddy blamed the previous government led by the TDP for financial loss caused to the state exchequer due to the purchase of renewable energy at high rate. He has put a detailed post on his Facebook handle.

The distress in the State’s energy sector is because of the misrule of the TDP Government. One look at the financials of the DISCOMs conveys the vulnerability of the sector. Under Mr. Naidu’s 5-year rule, owing to exorbitant energy purchase costs, the P&L of APSPDCL shows that the cost for energy purchase was higher than the utility’s revenues from operations.

Owing to the purchase of renewable energy beyond the RPPO mandate, the loss to the State exchequer is to the tune of Rs. 436 crores in 2016-17, Rs. 924 crores in 2017-18, and Rs. 1,293 crores in 2018-19. This is owing to favoritism and rampant corruption prevalent during those years.

Despite adequate availability of energy from conventional sources, Mr. Naidu’s purchase of renewable energy at prohibitively high tariffs has resulted in a loss of Rs 5,497 crores during the last four years.