The Hindu : Andhra Pradesh News : Power purchase cost to be slashed

Online edition of India's National Newspaper
Monday, Oct 04, 2004

Andhra Pradesh

Andhra Pradesh

Power purchase cost to be slashed

By Our Staff Reporter

HYDERABAD, OCT.3. The Transmission Corporation of Andhra Pradesh Ltd (AP Transco) will cut the power purchase cost per unit to Rs.1.73 paise, as against Rs.1.81 paise paid last year, thus saving Rs.230 crores for buying 46,000 million units.

This was stated here on Sunday by Rachel Chatterjee, the CMD of AP Transco, in an open letter to the 1.55-crore consumers in the State.

She said the corporation had evolved a three-tier strategy for reducing the purchase cost by going in for cheaper power, optimum sale to other States/utilities during the surplus period as per tariff approved by the APERC besides implementing an aggressive plan to reduce transmission and distribution losses.

Guidelines framed

Ms. Chatterjee revealed that this year the tariff order provided for sale of 1,114 mu to other States/power utilities during the surplus period, so that it could be used to minimise the burden on consumers. The AP Transco had framed guidelines to reduce the T & D losses to 20.47 per cent, as against 23.83 per cent during 2003-04, thus saving around Rs. 300 crores. The technical losses could also be cut by prudent investment in improving the system.

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