Release White Paper on sale plan of thermal plants, demands A.P. Power Employees’ JAC

The Andhra Pradesh Power Employees’ Joint Action Committee (APPEJAC) demanded the government release a White Paper on its plans to sell off Rayalaseema Thermal Power Plant (RTPP) and Sri Damodaram Sanjeevaiah Thermal Power Station (SDSTPS) to private players on the pretext that they are unviable. Also, on solar power plants of 10,000 MW proposed to be constructed by AP Green Energy Corporation Limited (APGECL).

In a letter to Energy Secretary N. Srikant, APPEJAC Chairman P. Chandrasekhar and Convener M. Vedavyasa Rao said the policies of the previous governments have adversely affected AP-Genco’s thermal plants, the AP Electricity Regulatory Commission did not fix the tariffs on a ‘Cost- to-Serve’ basis, and the managements gave a wrong projection of revenue requirement by appointing KPMG as a consultant.

‘Unsustainable’ ruse

The power sector has since been shown as unsustainable and RTPP and SDSTPS were contemplated to be given away to private parties or other PSUs.

The APPEJAC said AP-Genco was unable to arrange adequate quantities of good quality coal and by insisting that the Letter of Credit (LoC) payments can be made only to the Central PSUs, Independent Power Producers (IPPs) and renewable energy generators, the Government of India contributed to the overall poor performance of AP-Genco plants.

Power play

Consequently, AP-Genco plants did not have money to fend for themselves. A combination of factors pushed the power sector into a major crisis creating panic among nearly 85,000 families (serving permanent employees, pensioners and outsourced employees).

The JAC further stated that Chief Minister Y.S. Jagan Mohan Reddy appeared to be misled on the cost of 10,000-MW solar energy capacity to be created by APGECL as the unit cost was projected as ₹ 3, whereas the actual cost-to-serve would be up to ₹ 9 by the time the power reaches the consumer as transmission cost, wheeling charges, distribution cost, losses, PGCIL and grid balancỉng charges, stranded PPAs cost etc. are added to it. The AP-Genco should, therefore, carefully plan and steer the sector clear of the problems faced by it, the JAC appealed.

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