Power sector burdened with liabilities and costly power purchase decisions between 2019-24; coalition government restores financial discipline, strengthens infrastructure, and protects consumers
Amaravati: Energy Minister Gottipati Ravi Kumar said Andhra Pradesh's power sector, which was pushed into severe financial distress and operational inefficiency during 2019-24, is now witnessing a remarkable turnaround under the leadership of Chief Minister N. Chandrababu Naidu.
Addressing the media, the Minister stated that the government has undertaken comprehensive reforms over the last two years to restore fiscal discipline, improve power sector performance, strengthen infrastructure, attract investments, and ensure uninterrupted quality power supply across the State.
"The difference between a visionary leadership and administrative negligence is clearly visible in the power sector. While Andhra Pradesh emerged as a national model in power reforms under Chandrababu Naidu, the sector suffered enormous financial and operational setbacks during the previous regime. Since June 2024, we have been systematically rebuilding the sector and placing it on a sustainable growth path," the Minister said.
The Minister said indiscriminate and costly power procurement decisions during 2019-24 imposed a massive burden on consumers, power utilities and the State's finances.
During the five-year period:
"The cumulative burden on the power sector exceeded Rs.1.29 lakh crore, affecting consumers, power utilities and the State's overall financial health," Ravi Kumar said.
The Minister said that despite inheriting a financially stressed sector, the coalition government has not increased electricity tariffs even once since assuming office.
"While the previous government imposed repeated tariff hikes, our government has protected consumers and ensured affordable power. Chief Minister Chandrababu Naidu has directed us to work towards maintaining tariff stability in the coming years as well," he said.
The government has also absorbed Rs.4,497 crore of true-up charges that would otherwise have been passed on to consumers.
In addition, subsidies amounting to Rs.15,790 crore have been provided during 2026-27 towards agriculture, aqua farmers, SC/ST consumers and other welfare categories.
The Minister said financial reforms have started yielding significant results.
To meet rising demand and improve reliability, the government is implementing power infrastructure projects worth nearly Rs.6,000 crore.
Several new substations have already been commissioned, while more than 200 substations are under construction across the State.
The government has also launched a Rs.1,200 crore underground cabling project in Visakhapatnam to enhance network resilience and minimize disruptions during cyclones and extreme weather conditions.
The Minister said the coalition government has successfully revived APGENCO generation assets that were underperforming earlier.
"Through better coal management, improved operational practices and efficient planning, APGENCO achieved a historic generation record of 6,160 MW on March 11, 2026. Today our thermal stations are operating at PLF levels exceeding 85 percent," he said.
The government has reduced dependence on costly market purchases by maximizing generation from State-owned plants and available renewable energy resources.
Ravi Kumar said Andhra Pradesh has regained investor confidence in the renewable energy sector after the launch of the Andhra Pradesh Integrated Clean Energy Policy - 2024.
The policy provides incentives for solar, wind, pumped storage, battery storage, green hydrogen, green ammonia and EV infrastructure projects.
Key achievements include:
The Minister said the government remains committed to welfare while maintaining financial discipline.
Despite record demand growth, with daily consumption increasing from 238 MU to 275 MU and peak demand crossing 15,000 MW, the State has maintained uninterrupted power supply and system stability.
"The coalition government is committed to ensuring affordable, reliable and sustainable power for every household, farmer, entrepreneur and industry. Through financial discipline, infrastructure development, operational efficiency and renewable energy expansion, Andhra Pradesh is once again emerging as a national leader in the power sector," the Minister said.
"Our objective is clear: to build a financially strong, consumer-friendly and future-ready power sector that supports Andhra Pradesh's growth ambitions and strengthens the State's economy for generations to come," Ravi Kumar added.
