Over the past year, the State Government has taken steps with a two-fold objective of bailing out debt-ridden and cash-strapped Discoms and providing cost-effective and qualitative power to consumers. On Sunday, the Energy Department reported on the achievements made in the last year.
While Rs 17,904 crore was released by the Government in 2019-20 for clearing subsidies, both arrears and current, Rs 20,384 crore was also released for clearing power purchase fees (as at March 31 , 2019). Of the Rs 17, 904 crore paid for the grant, Rs 13,391 crore accounted for the accumulated fees as of 31 March 2019. “The total bills cleared (subsidy + PP dues) by the Discoms are worthRs 34,384 crore in 2019- 20,” the statement said.
Discoms are also in the process of clearing up the bills for renewable energy generators. The statement also stated that the government asked power utilities to fully focus on providing nine-hour daytime free power to all 18.5 Lakh agricultural services by the beginning of the Rabi season. Approximately Rs 1,700 crore is being spent on this to improve the power supply infrastructure, including new substations and the modernization of lines.
Energy Minister Balineni Srinivasa Reddy said Chief Minister YS Jagan Mohan Reddy believes that the effective implementation of the free power scheme will improve farmers' living standards, increase agricultural productivity and boost the rural economy. Asking power utilities to adopt a consumer-centric strategy, Srinivasa Reddy said that customers should not have to pay any excess on electricity bills.
For the first time , the Government has agreed to pay Rs 1707.05 crore for domestic subsidies. "Our government will never compromise the welfare of consumers," he said.