Power Cuts: Ramachandraiah Writes To CM

Endowments Minister C Ramchandraiah, on Tuesday, wrote an open letter to Chief Minister N Kiran Kumar Reddy, seeking immediate measures to resolve the on-going energy crisis in AP.

Describing the situation as alarming, he said that the power shortage has affected the overall economy and the growth rate of the state by pushing it to industrial sickness.

"Farmers, especially in the Telangana and Rayalaseema upland areas, are virtually driven to the state of distress and helplessness. Thousands of industrial undertakings are making huge losses, posing a threat to the very survival of these units, which provide employment to lakhs of people," he said.

Ramchandraiah said that hydel generation has been adversely affected due to inadequate rainfall in the catchment areas of the Krishna Basin.

"The present water levels in the reservoirs are declining very fast, and may soon end up with no power generation in hydel sector," he said.

"At the same time, gas-based power plants with an aggregate installed capacity of 3350 Mega Watts are operating at a very low capacity of about 30%, for want of adequate gas. Though huge volumes of gas are available in the KG Basin, our state is not benefitting for various reasons. Coal-based power generation is the only source which may cater to about 60% of the power requirements of the state," he said.

The minister opined that in view of the prevailing circumstances there is hadly any scope to improve hydel generation, and predicted that hydel generation might even come to a standstill in the fast-approaching summer.

"Thermal generation can be managed to be improved additionally by 10 - 15% by coal imports. The only possibility is to seriously explore for more gas for the existing gas-based power plants to enable them to generate 3350 MW," he said.

Ramchandraiah assered that the development of the state is not possible without adequate power made available. He suggested the direct purchase of LNG from Indonesia, Iran and other countries, and the construction of LNG re-gasification unit near the Visakhapatnam coastline on a war-footing.

He also advised that the government float a Special Purpose Vehicle for setting up the LNG re-gasification unit.

"The government should also provide solar operated pumps to farmers, which can get substantial subsidies from both the central government and World Bank subsidiaries," he said.

The minister said that the suggestions could be discussed in the ensuing meeting of the state cabinet.