Naidu cautioned that any further erosion in the revenue of the electricity board would result in international financing agencies like the World Bank and the Asian Development Bank denying credit for its future programmes.
Naidu said this in the Assembly after a discussion on the police firing on farmers on Tuesday in West Godavari district.
The opposition demanded that the hike in power and water rates be withdrawn and the subsidised rice price of Rs 2 per kilo be restored.
The Speaker disallowed the adjournment motion, but allowed a discussion on the issue.
Naidu, however, clarified that the increase in the water rate/cess will come into effect only after necessary legislation is passed to set up farmers' committees to maintain the canal systems.
He said the taxation measures including hike in farm power rates were taken after consultation with all political parties.
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Regarding the police firing on farmers on Tuesday, he said action would be taken against the defaulting officials once the result of the proposed judicial probe was known. Meanwhile, the erring officers have been put under suspension. Naidu also announced payment of ex-gratia Rs 1 lakh each to the dependents of the persons killed, Rs 50,000 each to those seriously injured and Rs 25,000 each to those who received simple injuries.
Naidu said the Telugu Desam party was ready to provide additional cash relief to the bereaved families if the need arose. He sought the opposition's help in resolving the issue.