AP Govt Approves Rs 12,939 Cr Power Subsidies To Support Distribution Companies For FY 2025-26

Amaravati, April 15 (KNN) The Andhra Pradesh government has approved the release of Rs 12,939 crore in subsidies to power distribution companies for the fiscal year 2025-26, providing financial support to various sectors including agriculture. 

The government has already disbursed Rs 4,470 crore for the first quarter, with plans to release the remaining amount in installments throughout the year.

According to the Energy Minister Gottipati Ravi Kumar, Chief Minister Chandrababu Naidu has instructed officials to ensure timely payment of energy subsidy dues to distribution companies, aiming to maintain uninterrupted power supply to beneficiaries, with focus on the agricultural sector. 

This directive followed a request from the AP Power Coordination Committee for the release of advance tariff subsidies for the first quarter of the current financial year.

In response to this request, the government issued a comprehensive budget release order allocating Rs 12,939 crore to the three distribution companies, to be distributed across the four quarters of the financial year. 

As mandated by Section 65 of the Electricity Act, 2003, state governments are required to pay subsidy amounts to distribution companies in advance on a quarterly basis. 

The government has accordingly granted administrative sanction for Rs 4,470 crore as an advance tariff subsidy for the first quarter, marking what officials describe as the first advance subsidy payment in recent years.

The distribution companies have been facing significant financial challenges due to delayed subsidy payments from the government. 

The provision of free power to the agricultural sector alone imposes a financial burden exceeding Rs 8,000 crore on the state treasury. 

Additionally, the government provides subsidized electricity to various segments including households of Scheduled Castes, Micro, Small and Medium Enterprises, aquaculture operations, and ferro alloy industries.

(KNN Bureau)