With the state announcing stiff power cuts in summer, the industry is worried about its implications. A few of them are even ready to foot an additional Rs 1,000 crore for power purchased directly from producers.
Chief minister K Rosaiah, following industry’s representation on Saturday, said the government was not opposed to open access of power from private players and it would allow the use of its grid for transport of power.
“The power supply situation in the state is precarious. There is a gap in the production and the demand. We are trying multiple options to come to grips with the situation,” he told the industry at an interaction meet.
However, buying power from other states would need the accord of the Andhra Pradesh Power Regulatory Commission.
The state is facing power cuts for three to four hours a day now. This was making it difficult for the industries here to buy power from outside for this short time. The industry, therefore, asked the state to buy power from other states and supply it to them. “This will be cash neutral for the state as the industry will bear the costs,” said Y Harishchandra Prasad, chairman, Confederation of Indian Industry - Andhra Pradesh.
However, even this had intrinsic problems. Only a part of the industry is ready to buy power from outside. With no dedicated feeders, other industries, which do not want to buy power, would also get the supply.
According to CII estimates, there is a shortfall of 25 million units a day. The industry pays pays an average price of around Rs 4. “We expect the price per unit to be between Rs 6 and 8,” Prasad said.
It implied an additional burden of Rs 5-10 crore on the industry per day. This, however, would still be cheaper than generators, which would cost Rs 15 a unit.
