On the 21st of September, the Union Government announced to release Rs. 3,300 crores as a loan to Andhra Pradesh power sector.
The loan was approved under the second tranche of Atma Nirbhar loan.
R.K. Singh, the Union Minister for Energy, New and Renewable Energy, directed officials to release the amount to Andhra Pradesh.
The Union Ministry of Power during a meeting on the 21st of September, praised Andhra Pradesh Chief Minister Y.S.Jagan Mohan Reddy.
The Power Minister said Mr. Reddy showed a way to other states by introducing DBT (director benefit transfer) for free power scheme which will empower farmers and strengthen discoms financially.
Mr. Singh also assured 30 % subsidy on 10,000 mw solar project for farmers’ free power scheme.
The state government has proposed the solar power project aiming at ensuring free power supply to the agriculture sector for the next 30 years. The Government has recently invited tenders for the project.
When the AP officials explained the poor financial status of AP discoms due to various reasons, the minister responded positively with the Union Government’s financial assistance to the State.
The support from the Union Government would be a help in easing excess financial burden on AP discoms.
Stay tuned for further updates.