Amaravati, March 24 Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday ordered a reduction in power purchase costs and a series of reforms aimed at stabilizing the state's energy utilities.
During a review meeting with Energy Department officials, the CM emphasized bringing down the power purchase cost to Rs 4 per unit.
"Intensify efforts to reduce power purchase costs and implement reforms to ease the financial burden on consumers while ensuring the financial stability of power utilities," Naidu said in an official release.
Officials informed the CM about the current reforms that have enabled a reduction of power cost by Rs 1.32 per unit, while a target has been set to achieve Rs 4.1 per unit by 2028-29.
Naidu claimed that his government has already "avoided passing on true-up charges to consumers and achieved a tariff reduction of 13 paise per unit."
He stressed the need for a comprehensive plan to clear power utilities' debts without raising tariffs.
Officials informed him that improving efficiency and better management of power utilities has already resulted in saving Rs 339 crore in the 2025-26 financial year.
Further, Naidu called for the adoption of new technologies and innovations to enhance energy efficiency and reduce costs.
According to the CM, the energy sector is rapidly shifting towards green and cost-effective power generation. The southern state is well-positioned to leverage these changes.
He pointed out that the state's focus on renewable energy has helped attract major investments, including data centers by global companies like Google, as stated in the press release.
Further, he proposed establishing an energy university to promote research, innovation, and advanced technologies in the power sector, and called for strengthening the Centre of Excellence for Energy Transition.
Aiming to encourage innovation, the TDP supremo suggested setting up a dedicated incubation fund to support startups in the energy sector, with power utilities providing financial assistance such as margin money.