Scarcity of government land has become a major impediment for power utilities to expand their network in the city.
The government has sanctioned four indoor and two gas insulated sub-stations to meet the ever-increasing demand. But, the power distribution companies could not take up construction of sub-stations owing to non-availability of government land. At least six to 10 cents of land is required for setting up a new sub-station.
Given the escalating prices of land post-bifurcation, the power utilities are not able to purchase land spending huge sums.
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The market value of 300 square yards land in Vijayawada now costs between Rs. 1.5 crore and Rs. 2 crore. “We cannot afford to spend huge sums on purchasing land. If we buy land, we will be constrained to pass the burden to the consumers to sustain operations,” said an official of the Southern Power Distribution Company Limited (SPDCL).
He added that a letter had already been forwarded to the Vijayawada Municipal Corporation (VMC) seeking land for setting up sub-stations.
“We are waiting for a response from VMC officials. If they allocate land, we will approach the Power Finance Corporation or the Rural Electrification Corporation Limited to secure assistance for establishing sub-stations,” the official said.
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According to him, the city consumes 11 to 11.5 million units a day, and in summer, it is close to 13 MU.
Feasibility of sanctioning new services could also be considered quickly, he added. When contacted, SPDCL Superintending Engineer B. Mohan Krishna confirmed the sanction of four indoor and two gas insulated sub-stations.
We are waiting for a response from VMC officials. If they allocate land, we will approach the Power Finance Corporation or the Rural Electrification Corporation Limited to secure assistance for establishing sub-stations.
An SPDCL official