6 days ago
Reeling under financial crisis, Andhra Pradesh discoms struggles to clear dues
VIJAYAWADA: Notwithstanding huge tariff increase in the last one year, power utilities are struggling to take up new projects due to the huge pending bills to the contractors. A grim financial position has put the discoms on mat as they are neither taking up new works nor clearing the old dues.
The chief secretary K Vijayanand himself came down heavily on the authorities at a recent review meeting held in Bapatla for the delay in taking up the planned development works.
However, the field level officials were unable to reveal the facts as the contractors are not keen to take up works with the power utilities for fear of delayed payments. The senior officials are also worried about possible attachment orders from the courts if failed to clear the bills.
The discoms reportedly owed nearly Rs.2000 crore to different firms.
According to information (documents are in TOI's possession) a private firm Vijai electricals of Hyderabad approached the commercial court in Visakhapatnam seeking direction to EPDCL for payment of dues to the tune of nearly Rs.80 crore.
Taking the issue with a serious note, chief secretary Vijayanand directed the EPDCL CMD to immediately clear the payments.
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The agency completed the works under Accelerated Power Development and Reforms Programme (APDRP) with the financial support from the Centre.
While the discom is seeking funds from the state govt to manage the situation, state govt asked the power utility to handle the crisis from its own resources. 'The discoms are struggling to clear dues to the tune of Rs.2000 crore to different agencies,' said a senior official.
APDRP aimed to reduce transmission and distribution losses, improve the reliability and quality of power supply, and enhance the transparency of power utility operations through IT implementation. Reducing Aggregate Technical & Commercial (AT&C) losses.
'The government hereby accord permission to the CMD, EPDCL to arrange balance payments in APDRP project from internal funds through PD account in order to avoid execution orders of attachment in the commercial court,' chief secretary Vijayanand clearly stated in his communication with EPDCL CMD.
Curiously, EPDCL did not respond to repeated alerts from the chief secretary's office to clear the dues. Sources said that other discoms were also facing the same fate citing financial constraints.
Speculation is rife that one big firm, which is considered to be close to the top people in the previous YSRCP govt, has got complete hold on the energy department and getting its bills cleared as soon as the funds received from the Centre and state.
This electrical transformer company is the chief promoter of a controversial solar power project to which the state govt decided to grant 20000 acres of green fields in Karedu despite farmers angry protests.
Curiously, Vijai electricals which is struggling to get the bills is owned by veteran TDP leader Dasari Jai Ramesh of Gannavaram constituency.
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