Andhra Pradesh in deep energy crisis

Amaravati: In the wake of the unfolding energy crisis in Andhra Pradesh, Chief Minister YS Jagan Mohan Reddy wrote a letter to Prime Minister Narendra Modi seeking his urgent intervention.

The Chief Minister stated that the situation was alarming. During the post-Covid period demand for power had increased by 15 per cent in the last six months and 20 per cent in the last one month.

AP has been meeting grid demand of 185 million units to 190 million units per day. AP Genco supplies about 45 per cent of State's energy needs. APGenco plants are operating at less than 50 per cent because of the coal shortage. Jagan said this has resulted in the State being forced to depend heavily on market purchases for sourcing its shortfall energy.

The daily average market price of about 40 MU per day purchased has gone up by three times from daily average of Rs 4.6 per kilowatt. The government is now paying Rs 20 per kW. He said if the Centre does not intervene immediately, the finances of distribution companies would further deteriorate. He said it has become difficult to meet the grid demand pushing the State towards load shedding.

Hence, he appealed to Modi to direct the Coal Ministry and Railways to allot 20 coal rakes to AP thermal stations. He said the stranded and non-working coal plants must also commence operations immediately, regardless of the stage of proceedings at NCLT. Deepwater gas available with ONGC and Reliance may be supplied on an emergency basis to 2300 mw stranded and non-working gas plants in AP. The deficit of 500 mw from central generating stations should be revived. Banks and lending institutions may be instructed to provide working capital to Discoms till the crisis is over in order to make coal payments and undertake market purchases, he added.