Andhra Pradesh government to procure power from SECI

The Andhra Pradesh Energy minister, Mr Peddireddi Ramachandra Reddy announced that the nine-hour free power scheme has provided farmers with assurance and security. On the occasion of Sankranti which is considered as the farmer’s festival, the minister held a telephonic review with power sector officials on the state’s overall power supply situation, particularly in the agriculture sector.

The minister said the state has decided to procure 7,000 MW power from the Solar Energy Corporation of India at a cost-effective rate of Rs 2.5 per unit. The state government has given a guarantee for reliable power supply to farmers for the next 25 years. The SECI will start supplying 3,000 MW from September 2024 in the first tranche, 3,000 MW from September 2025 in the second tranche, and 1,000 MW from September 2026 in the third tranche.

The nine-hour free power scheme will help in boosting agricultural productivity and empowering the rural economy. The government of Andhra Pradesh wants to make the free power scheme permanent in order to help farmers in the future. The state is also implementing initiatives such as subsidised aquaculture power, financial assistance, and Rythu Bharosa. These initiatives will have a significant impact on rural areas and the lives of farmers.

In August 2022, Greenko secured a Rs 55 billion loan from the Power Finance Corporation (PFC), a public sector undertaking to construct a river energy storage project in Andhra Pradesh. The loan tenure is for 20 years subject to an interest rate of 11 per cent annually. The repayment of the loan will start after the project is completed. The storage project is being built at a cost of Rs 76 billion of which the debt component is being funded by the PFC.