Andhra Pradesh

Orders issued for formation of A.P. Green Energy Corporation Limited

‘Need for evolving an alternative mechanism to provide quality power’

The State government has issued orders for the formation of A.P. Green Energy Corporation Limited (APGECL) as a 100% subsidiary of AP-Genco under the Companies Act, 2013, for establishing 10,000-MW of solar power projects.

It was stated in the G.O. issued by ex-officio Principal Secretary (energy) G. Sai Prasad that the State is incurring an expenditure of more than ₹10,000 crore on agriculture and aquaculture subsidies and Lift Irrigation (LI) power charges every year and the subsidies have been increasing over the years due to the rising cost of power supply as well as an increase in the number of pump sets.

The government has since felt that to ensure subsidies are provided on a sustainable basis, there is a need for evolving an alternative mechanism to provide quality power and nine hour daytime free supply to farmers.

Solar energy

It found that solar energy has the potential to fulfil those requirements as its cost is lower compared to the current average procurement cost of DISCOMs and also due to the fact that all solar power is generated during daytime.

In order to provide free power to the agriculture sector and LI schemes, the total capacity of solar plants required is likely to be approximately 10,000 MW, including the projected annual increase in agricultural demand.

The government has, therefore, resolved to set up the APGECL for establishing approximately 10,000 MW of solar power projects as a permanent solution to supply free power to farmers.

‘No contract employees’

While welcoming the formation of APGECL, as a subsidiary of AP-Genco, APSEB Assistant Electrical Engineers’ Association president B. Vamsi Srinivas condemned the move to recruit AEEs and other cadre employees through contract/outsourcing.

He insisted that all the staff should be from APGenco and that the association would make a plea for it to the government and the APGenco management.

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Printable version | Mar 29, 2020 9:29:23 AM |

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