Amaravati: Chief Minister Nara Chandrababu Naidu on Tuesday criticised the previous administration for plunging the state’s electricity sector into disorder, saying the cancellation of power purchase agreements (PPAs) had imposed an additional burden of Rs 9,000 crore on the public.

Speaking at a review meeting with senior officials at the Secretariat, the Chief Minister said the state had been forced to pay power companies despite not using the contracted electricity.

Naidu said the NDA government had stabilised the sector through efficient system management without increasing tariffs. He directed officials to ensure quality-rated power supply, draw long-term plans to avoid generation deficits, and institutionalise an annual hackathon to promote innovation in the energy sector.

The Chief Minister announced the extension of incentives for ferro alloys industries for another year, describing them as key industrial units in Andhra Pradesh. The decision will cost the government Rs 1,053 crore.During the review, Naidu examined the state’s power supply position, progress under the Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan (PM KUSUM) scheme and the Pradhan Mantri Suryodaya Muft Bijli Yojana, generation capacity, and measures to reduce distribution losses.

He directed officials to bring down transmission and distribution losses from the current 9.20 per cent significantly by 2029 and explore power-swapping agreements with other states to reduce purchase costs.

The CM instructed that rooftop solar projects under Central schemes be expedited and that 4,792 MW of additional capacity be created under PM-KUSUM. He cleared the proposal to install solar panels on 483 government buildings, which will contribute 150 MW to the grid. He also stressed the need for public awareness campaigns promoting energy-efficient appliances.

Naidu instructed officials to ensure that companies that signed agreements under the Integrated Clean Energy (ICE) policy begin project activities within 60 days, adding that permits must be issued swiftly to resolve bottlenecks. He said Andhra Pradesh must evolve into a ‘new energy hub’ and emphasised reducing interest burdens in the sector’s debt servicing.

Chief Secretary K Vijayanand informed the Chief Minister that the power purchase cost had fallen by 20 paise per unit, resulting in savings of Rs 400–Rs 500 crore. Naidu responded that further savings could be achieved through power-swapping arrangements.

Naidu said surplus energy generated by consumers through rooftop solar systems should be sold back to the grid. He approved free solar panels for SC/ST households, Rs 20,000 subsidy for BC consumers up to 3 kW, and implementation of the government’s announcement of 200 free units for handlooms and 500 free units for power looms. He also cleared nine components, including capital subsidy and GST exemption, under the ICE policy.

The Chief Minister asked officials to study the feasibility of pumped storage power (PSP) projects at the state’s reservoirs in coordination with APGENCO and Irrigation Department. Naidu set a target to convert all RTC buses to electric vehicles within five years and ordered the procurement of 1,000 EV buses. He also directed the establishment of 5,000 EV charging stations across the state and asked power utilities to focus on non-tariff revenue sources.