The Hindu : Andhra Pradesh News : All-party meet reviews free power policy

Online edition of India's National Newspaper
Wednesday, Dec 29, 2004

Andhra Pradesh

Andhra Pradesh

All-party meet reviews free power policy

By Our Staff Reporter

HYDERABAD, DEC. 28. The State Government held consultations with political parties and farmers' organisations on Tuesday to review the free power policy to the agriculture sector in view of a `crisis' situation developing due to mushrooming of unauthorised connections to pump sets.

After hearing their views in separate meetings, the Finance Minister, K. Rosaiah, told reporters that the connections had gone up to 3.5 lakhs in the last couple of months leading to increased load on the distribution system and large-scale burning of transformers and motors.

The review was not forced by any monetary considerations, he said.

The Minister said the all-party meet was convened mainly because the Government wanted to put up a strong case before the Andhra Pradesh Electricity Regulatory Commission (APERC) when it presented its views on Annual Revenue requirement report (ARR) for 2005-06.

The deadline for presenting its views is December 30 but the Government is likely to seek more time.

At the all-party meeting, the TDP and the BJP accused the Government of trying to dilute the scheme for free power supply to farmers, a promise that the Congress had made before the Assembly elections. However, the CPI (M), the CPI and the TRS demanded that the benefit of free supply should be restricted only to the poor. The MIM said it `smelt a rat' as the Government wanted to modify the free power scheme and seek a structural adjustment loan from the World Bank.

Open mind

Describing as unfortunate the Opposition raising a hue and cry as if the free power policy was being withdrawn, Mr. Rosaiah said the Government had invited the parties with an open mind.

He said the views of all parties were sought to explore whether the facility could be continued to ayacutdars and those for whom agriculture was a subsidiary activity.

When the free power policy was implemented on May 14, the Government contemplated waiver of charges on 23.39 lakh pumpsets which were in use and tariff was paid by the farmer. It was a new experiment by the Government.

The TDP, which earlier held that free power was not possible, was now interpreting the rule differently and was demanding the concession to even unauthorised services.

The bourgeoning of illegal connections had strained the distribution system, threatening supply even to the authorised consumers.

The number of illegal connections had increased from 1.39 lakhs on July 20 to 3.5 lakhs within a month.

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