Monday, November 11, 2024

Energy sector deteriorated under Jagan regime: Gottipati

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Energy Minister Gottipati Ravi Kumar criticised the previous Jagan Mohan Reddy government, alleging that the energy sector suffered significant damage during its tenure. The Minister asserted that due to misguided decisions by Jagan’s administration, the performance of the Discoms deteriorated sharply, leading to a drastic increase in debt over the past five years. He further claimed that the previous government burdened the public by raising electricity tariffs under the pretext of covering debts. In contrast, the Minister recalled that during Chandrababu Naidu’s tenure as Chief Minister, electricity bills were not increased even once in five years. He pointed out that Jagan Mohan Reddy’s government hiked electricity charges nine times in the last five years.
Minister Ravi Kumar stated that despite these tariff increases, the Discoms saw no tangible benefits. Instead, the debts of the Discoms reportedly surged by 79 per cent under the YSRCP regime.

He said that the Discoms can only operate effectively if they secure loans. He noted that the previous government left behind unpaid amounts totalling Rs 34,954 crore, including subsidies and other obligations, and criticised the YSRCP government for repeatedly borrowing to settle these debts. Minister Ravi Kumar assured that the current alliance government is taking steps to restore stability to the system.
The Minister also highlighted that the Discoms’ ratings, based on central government assessments, plummeted after Jagan Mohan Reddy assumed office, dropping from ‘A’ to B, C, and D categories. He explained that this decline in ratings led to higher interest rates on loans. In contrast, Minister Ravi Kumar pointed out that even after the state bifurcation, the Discoms maintained an ‘A’ rating under Chandrababu Naidu’s leadership, attributing this to sound policy decisions. He acknowledged that Andhra Pradesh faced numerous challenges following bifurcation, but expressed confidence in Chandrababu Naidu’s track record of strengthening the power sector. The Minister concluded by affirming that the current Chief Minister is now focusing on the energy sector, with clear steps being taken to reduce debt and put the Discoms back on track.

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