Transco opposes free power supply to ryots

By Our Special Correspondent

HYDERABAD, AUG. 29. If power is given free to the agriculture sector, then the entire power sector will get crippled and the demand is impractical and undesirable, according to the Transmission Corporation of Andhra Pradesh. Providing free supply to the agriculture sector will cost Rs. 2,130 crores, and not Rs. 300 crores as projected, the TRANSCO asserted.

In a statement, it said that the ``cost to serve'' agriculture is Rs 2.19 per unit while the revenue was 23 paise, and the subsidy is Rs 1.96. Since 10,154 million units was the agriculture consumption, the subsidy is high. Recently, the Government increased supply hours from nine to 12 to save standing crops, and this additional supply of eight million units costs an additional Rs. 1.6 crores per day. The pumpsets employed are unbranded and inefficient and operate at 20 per cent efficiency. Non installation of capacitors and employing direct online starters result in frequent fuse blowouts, it said.

The TRANSCO said that Andhra Pradesh is all set to become self- sufficient in power with investments to a tune of Rs 1,400 crores to evacuate power from the Simhadri and BSES power projects which will be commissioned by March next. If free power is given, no financial institution will advance loans to the power sector and even Central Government-assisted schemes will not come to the State.

Send this article to Friends by E-Mail

Section  : Southern States
Previous : Cong. decries 'tirade' against YSR
Next     : Coop banks blame the media