Cost-effective Steps in Power Sector on Anvil

Chief Minister N. Chandrababu Naidu is expected to take a decision soon on cost–effective practices proposed to be adopted in the power sector to avoid imposing further burden on consumers and supplying quality power in an economically sustainable manner for the next 25 years, particularly to entrepreneurs and MNCs desirous of setting up industries in Andhra Pradesh. A.P. State Energy Efficiency Development Corporation (AP-SEEDCO) Managing Director and Media Advisor (Energy and CRDA) A. Chandra Sekhar Reddy said in a press release that Mr. Naidu told the officials that at least Rs. 2000 Cr could be saved through cost reduction mechanism and by adopting the best practices in the generation and across the supply chain. Mr. Naidu insisted that it was time for the power utilities to implement cost-effective measures which ensure stabilisation of existing tariffs and reduction over a period of time. The proposed cost-effective measures are optimisation of quantity of coal used in power generation, reduction in the cost of power through local smart grids, purchase cost optimisation of wind, solar and other means of power, swapping of bonds to be issued for balance 25% (Rs. 5828 Cr) of the UDAY scheme loans, swapping of PFC/REC loans amounting to Rs. 4000 Cr, variable cost reduction from thermal stations and swapping of high-cost loans with low-cost loans. It was estimated that the measures would yield a savings of approximately Rs. 2020 Cr.