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AP Cabinet approves a proposal to set up Rs 40,000 worth solar plant in public sector

AP Cabinet approves a proposal to set up Rs 40,000 worth solar plant in public sector

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Amaravati: The Cabinet took a decision to set up a solar power project with a capacity of 10,000 MegaWatts, through AP Green Energy Corporation Limited (APGECL). It is estimated that the project would cost around Rs 35,000 Cr to Rs 40,000 Cr, revealed the Minister for I
and PR Perni Nani, in a press conference aer attending the cabinet meeting on Wednesday.

Minister said that at present the government has been providing free electricity to the farmers to a tune of around Rs 8,000 Cr per annum and another Rs 15,000 Cr per annum spending on Li Irrigation Schemes in the State. The total financial burden on the State government or the Gencos and Discoms is around Rs 23,000 Cr per annum on the agriculture sector, he informed. The agriculture pump sets are increasing between 50,000 to 1 Lakh year on year in the State, which has been an additional burden.

The demand from the agriculture sector and the subsidies from the government side are consistently increasing every year. But, the government is paying around Rs 3,000 Cr to Rs 4,000 Cr per annum to the Gencos and Discoms, he said. It forced the Gencos and Discoms into the debt trap.

At present, there is a demand for 45,000 Million Units. To meet that ever-growing demand, the State government is aiming at the alternative power generation renewable resources.

At the same time, Chief Minister YS Jagan Mohan Reddy has directed the concerned officials to establish the plant in the public sector, not in the private sector. Hence, the government has taken this decision to establish the project.

The Central Non-conventional Energy Resources Ministry provides financial assistance of Rs 10 lakh per MW. This facility would be utilised for the establishment of solar power projects.

As part of that, AP Green Energy Corporation Limited would be established. This would be managed by the AP Genco for which 18 posts have been sanctioned including that of chairman and managing director.

AP State Financial Corporation Limited would be set up for proper utilisation of surplus funds. Similarly, the Cabinet has decided to set up AP State Agricultural Council as never before in the country for a regulating mechanism in the provision of quality seeds, fertilizer and pesticides to farmers.

The Agriculture Council would also supervise and regulate the functioning of agriculture and horticulture colleges in the state and accord recognition to them. It would also monitor the functioning of public and private organisations in the sector.

As per the recommendations of the Cabinet Sub-Committee, it has been decided to increase the compensation to the orchards and horticulture crops, to be taken under the Land Acquisition. It was also decided to set up a new fire station at Vempalle in YSR Kadapa district.

Source: thehansindia
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Anand Gupta Editor - EQ Int'l Media Network

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