Amid power woes, Andhra ministers run up huge bills

By V V Balakrishna | ENS - HYDERABAD

26th August 2012 08:14 AM


Even as chief minister Kiran Kumar Reddy preaches power saving to outage ravaged people across the state, ministers and state-supported VIPs are running up monthly electricity bills of several thousand rupees, paid entirely by the Roads and Buildings (R&B) Department.

Galla Aruna tops the list of cabinet ministers toting up huge power bills, with Rs 62,657 in July.

Opposition leader Chandrababu Naidu - whose bill is paid by the government - is no slouch either: his Jubilee Hills residence ran up a bill of Rs 84,352 in July.

The chief minister’s camp office at Begumpet costs the exchequer even more: its monthly power bills are in the region of Rs 1 lakh.

Ministers Mukesh Goud, D K Aruna and Danam Nagender all burnt midnight oil to the tune of Rs 15,000 or more (see graphic).

The chief minister advised people not to use air-conditioners but his ministers have apparently not heard him.

 All of them flout a rule not to have more than two ACs in their official residences.

 One senior minister has no less than 12. Another enjoys six.

 Roads & Buildings officials say the two-AC limit was fixed in the late 1950s and should be revised to four, considering the fact that most ministers now have three-bedroom houses with an office.

 “But a dozen ACs? Nothing but a waste of public money,” fumed an R&B official.

 Whenever a minister has sought permission to install additional ACs at his residence, R&B staff do remind the government about the two AC rule. But the government always vetoes the objection.

 Whatever the excess, it is the people who pay for it. One minister, a big industrialist, constructed a sprawling house that clocks up a large power bill - paid by the people.

 Some ministers have multiple power connections - again paid by the people.

 “The government should fix a maximum limit for power consumption by ministers. If the government fixes Rs 20,000 per month, any bill above that should be borne by the minister,” an R&B official said.

The suggestion has been sent to the government recently. However, no action has been taken.

GRAPHIC

POWER BILLS BY MINISTERS  AND OTHERS  IN JULY 2012


Galla Aruna   Rs 62,657

M Mukesh Goud  - Rs 33,188

P Sudharshan Reddy  - Rs 6,346

E Pratap Reddy   -  Rs 11,021

Danam Nagender  - Rs 17,321

DK Aruna   -  Rs 25,015

N Chandrababu Naidu (Opposition leader and Cabinet rank)  - Rs 84,352

Chief Minister N Kiran Kumar Reddy's camp office  - around Rs one lakh per month

A Chakrapani   Rs  4,016



   COMMENTS:

Power cuts, costly yarn driving weavers to suicide
More from this section Amid power woes, Andhra ministers run up huge bills TDP moves Consumer Forum over power loss Assembly special meet to discuss SC, ST Sub-plan report Andhra CM not in a hurry on Dharmana issue Botcha falls from high command's grace? .Comments(4) It is huge shame. It is demoralizing that we today live in a country where the leaders are plundering the country for their own benefit. Winston Churchill, 65 years ago said of Indians, “Power will go to the hands of rascals, rogues, freebooters and charlatans; all Indian leaders will be of low caliber and men of straw. They will have sweet tongues and silly hearts. Giving falls promises will be their game with the poor and stupid masses. They shall be shameless and unpatriotic in their ways while handling problems of people. They will fight amongst themselves for power and India will be lost in political squabbles. Justice will be a matter of Joke. A day would come when even air, water..., and even common salt would be taxed in India.” How Prophetic Winston Churchill was, way back in 1930. Dont blame White man for India's problems. Indians are unfit to Rule themselves. Now they are being led by Bandits in Delhi. Such is our India. What a Shame

Posted by Truth at 08/26/2012 08:52 Reply to this Report abuse
This is Our India. Check this, dated Nov 2010 http://www.hindustantimes.com/India-news/NewDelhi/Sonia-Gandhi-s-power-bill-over-Rs-7-lakh-for-3-years/Article1-623106.aspx

Posted by Truth at 08/26/2012 09:09 Reply to this Report abuse
OH! The followers of mahatama are leading very simple life ,we must congratulate them for setting an example for others.

Posted by l.s.mohandoss at 08/26/2012 10:11 Reply to this Report abuse
the followers of GANDHI, SET AN GOOD EXAMPLE FOR OTHERS. oh!

Posted by l.s.mohandoss at 08/26/2012 10:16 Reply to this Report abuse

Power supply crisis: Is there a solution?

GROPING IN DARK

By Express News Service - HYDERABAD

09th July 2012 11:04 AM

The state is facing a major power crisis. Relief from the cessation of agricultural activities in May has ended and utilities will now have to provide power for khariff season. As a result, the domestic consumers will have to go through an ordeal.

But the government does not have any sure fire method to solve the crisis except asking the consumers to grin and bear the situation.

With the situation turning alarming, the top brass of the power utility is putting its head together on July 11 to wriggle out by giving some excuses to the consumers.  In this critical juncture of power supply position, the principal secretary energy Dinesh Kumar has decided to review general power supply position and various aspects of power sector, that includes ensuring 7 hours power supply to farmers, status of short-term and medium-term bidding, separation of agricultural feeders, and other issues at an high level meeting to be held at Vidyut Soudha on July 11. CMDs of APTransco and Discoms will attend the meeting, after which the officials have to submit a report to the government.

The State government is contemplating giving permission to a maximum number of hydel projects on canals and rivulets. For this, a cabinet sub-committee has to visit some states and give its report. The government will then prepare a mini-hydel power policy and once the policy is in place, the construction of those projects will start. So far, there are only 36 commissioned hydel projects with a total capacity of 101 MW. "We want to encourage mini-hydel projects in a big way," minister Peddi Sudharshan Reddy, member of the sub-committee, said. But no one knows how long it will take to sanction the projects or how long it will take to commission the same.

"How are you going to overcome the shortage?" chief minister N Kiran Kumar Reddy asks officials at every review meeting for which the suggested solutions are impracticable in the short-run. For the last two years, there has been no improvement on the power supply front.

The supply of gas, lack of dedicated power corridor, slow progress in adding additional capacity and lack of sufficient coal are some of the major problems that have been encountered by the power utility for several years. Whenever there is a shortage of power because of monsoon failure, the officials blame the nature.

The only viable short term measure is buying power. So  far, 922 MW is tied up with different sources. Additional power from NTPC Jhajjar has been tied up (131 MW) for July and October. By then, the crop season will be nearing completion.

The medium term power purchase is concerned with technical bids that are still under evaluation. The price bid will be opened on July 15 and tenders will be finalised by August 2012 so as to secure transmission corridor by July 2013.

Transmission corridor: Whenever there is a shortage of power, the utility looks to other agencies and states to purchase power. Even if it was ready to pay higher price for unit, bringing electricity to the state is a difficult problem due to non-availability of Transmission Corridors.

Government to monitor its finances online

  VV Balakrishna / ENS



Published Date: Aug 10, 2012 10:36 AM

Last Updated: Aug 10, 2012 10:36 AM



For better planning and efficient budget management, the finance department is putting in place a web-based financial management system. The department has invited tenders for the Rs 100- crore massive information technology project and the last date for submission of tender proposals by the top-class IT firms is August 31.



According to sources in the finance department, around ten international IT companies such as IBM, HP, CMC, Infosys and HCL Technologies are eligible for filing the tenders. The fully web-based financial management can be done by the Level-5 Capable Maturity Model Institutions (CMMIs) in the world. Sources said that the short-listed company would start developing a software by October and the first phase would be completed by June 2014 and the second phase by the end of that year.



t may be recalled that the finance minister had hinted at introduction of web-based management of state’s finances in his budget speech this year.



Once the “futuristic enterprise class” solution is in place it will ensure transparency and accountability in the finance department. The proposed system is necessary as the government has no information on a day-to-day basis where the money is locked up at various departments. For example, if the government sanctions Rs 50 crore under one head for a work and it is not spent entirely for any reason and, in the meanwhile, the same department seeks funds for some other work and the government has no money and is unable to sanction funds, the cumulative effect is development gets a dent. “In fact, money is available with the department. But it is not spent. Web-based financial management will help the government avoid such things and spend the money on the basis of need,” an official explained.



The objectives of the web-based management include improved capability of planning and budget management through a collaborative approach among various divisions of the finance department. It controls excessive or fraudulent withdrawals. The management of receipts will also be improved.



On the expenditure side, heads of departments can directly monitor payments for the work executed on a regular basis. It also ensures physical target achievements. Besides, officials can access complete information on a real-time basis on debt, loans, investments and outstandings from even lower-level officers.



Sources said that the web-based management would help the finance department monitor cash flow for projects. As of now, the department has no single source that facilitates collation, presentation and utilisation of financial information. The present applications are not meeting the functional requirements of the department. The finance department is already making payments online. That is why no contractor is seen making rounds to the finance minister’s peshi nowadays.



The proposed software will also have e-payment gateway for the public to pay bills of all the departments. The software will be linked to the RBI and other banks. In case the government presents a cheque to a particular bank, sometimes the bank takes more than four days to remit the money into the government’s account. This can be avoided in future, an official said.

Government to bank on hydel projects

By Express News Service - HYDERABAD



16th July 2012 09:28 AM



The state government is all set to give permissions for construction of a large number of mini-hydro-electricity projects across canals and rivulets to overcome the power crisis.



For this, a policy on construction of mini-hydel projects will be formulated soon and a draft paper will be ready within one month. A team of ministers comprising major irrigation minister P Sudarshan Reddy, revenue minister N Raghuveera Reddy and agriculture minister Kanna Lakshminarayana and others will visit Maharashtra, Karnataka and other states to study the mini-hydel projects there soon and submit a report to the government.



A decision to this effect has been taken recently. Already, officials concerned have visited a couple of states and briefed the ministers. "To study and evolve a policy on mini-hydel projects, we wanted to visit some states," Sudarshan Reddy told Express. Mini-hydel projects would be sanctioned to a maximum extent, he added.



Officials said the government had not sanctioned new hydel projects on canals and rivers in the last five years as construction of these projects might cause hardships to local farmers. Now, with the acute shortage of power, the government thinks that mini-hydel projects will help it overcome the crisis to some extent.



APGenco director (hydel) G Adiseshu said that a draft policy paper would be prepared and presented to the ministers soon. A decision on giving permission for mini-hydel projects would be taken only after studying the success of projects in other states, another official said.



Once the draft policy is ready, the cabinet sub-committee will place the same before the Cabinet for approval. Sources said that the Non-conventional Energy Development Corporation of Andhra Pradesh (Nedcap) received proposals for construction of as many as 393 min-hydel projects on canals and rivers except on the Krishna and the Godavari. The total capacity of all the 393 hydel projects will be 994.11 MW. Of these, 59 with an installed capacity of 183.10 MW have been permitted. Of the 59 plants, 36 have started production and are generating 100.65 MW of power. Another 80 plants with a capacity of 80 MW are under various stages of construction.



Permission would be accorded for new mini-hydel projects by the Nedcap, sources said.

Lack of encouragement hits wind power production

Though the state has the potential to generate 14,497 MW of wind power at 80 metre height, it is able to utilise the capacity to generate just 245 MW.

This is due to lack of initiative from the state government and the decision of the Centre for Wind Energy Technology to withdraw concessions to industrialists who want to set up wind power projects.

On the other hand, neighbouring Tamil Nadu, which has the potential of 5,374 MW of wind power, has set up projects to produce more than 6,000 MW.



Wind power can be generated between February and July, and will come in handy to the state government during the peak demand time when the state faces power shortage and resorts to shortterm power purchase.



Currently, the state is purchasing power at Rs 10 to Rs 15 a unit as part of short-term power purchase agreements.



But the recommended price of wind power is just Rs 5.42 a unit. Thus, the government can save power and money on short-term purchases of wind power. The Centre for Wind Energy Technology has recommended Rs 5.42 per unit for wind power but APTransco and Discoms are willing to pay only Rs 3.50 to Rs 4.20 per unit.



The low rate is discouraging industrialists from setting up wind power plants.



PLF- based tariff:



Compounding the problem, the Centre withdrew the Accelerated Depreciation (AD) and Generation Based Incentive (GBI) for wind power plants. Earlier, industrialists who had set up wind power plants could claim 100 per cent AD in their tax returns. Under GBI, industrialists were getting 0.50 paise extra per every unit. With the withdrawal of these two, industrialists now want tariff based on the plant load factor (PLF) for wind power.



The PLF for wind power plants in the state is around 12.56 per cent to 22 per cent. It varies from district to district. Power producers demand that the state be divided into three zones and tariff fixed on the basis of PLF.



For instance, the estimated PLF for wind power projects in districts like Nizamabad, Medak and Rangareddy is 20 per cent. In the Rayalaseema region, Anantapur has more PLF.

The Central Electricity Regulatory Commission (CERC) issued fresh guidelines on PLF-based tariff. If the PLF is 22 per cent, the unit cost to be paid to wind power plants should be Rs 5.42 per unit. If the PLF is 20 per cent, the rate should be Rs 5.96.

Industrialists argue that even if the state government pays Rs 5.50 per unit, the cost will remain the same for the next 25 years as the PPAs made with wind power producers will be valid for 25 years. Wind power producers argue that the proposed tariff by Discoms of Rs 4.20 per unit will not be helpful in the wake of the withdrawal of AD and GBI.

They say that wind power will be a boon to the state which is facing power shortage and is buying power at higher prices. If wind power can be fully tapped, there will be no need for the government to go in for short-term power purchases, they assert.

FSA: Urban poor to pay for rural rich

VV Balakrishna


Households have to shoulder the burden of free power for agriculture


Hyderabad: If you have a domestic power connection and do not have any agricultural land, yet, you may have to pay for power consumption by farmers for agricultural purpose. This is because the state government, which is supplying free power to the agricultural sector, is passing on the fuel surcharge adjustment burden to the domestic consumers.

The domestic power consumers have three counts to worry on. One, they have to pay Rs 2,165.98 crore towards FSA for the first quarter of 2012-13; two, nearly half of the burden came from the agricultural sector; and third, a consumer, if shifted to a new rented house recently,is paying the FSA of previous occupant.

The major worry of domestic consumers is that they have to pay the FSA amounts of the agricultural sector. Even if a poor man living in a hut in a city will be forced to pay the FSA amount of a rich landlord in a village.

It may be recalled that the state government was supplying free power to around 32 lakh borewells in the state. However, there is no mechanism available with the power utility to quantify the power consumption by the farmers. Thus, it is adding the FSA amounts of the farmers to domestic and industrial consumers. The domestic power consumers, especially the poor, are burdened by this.

It was not just to pass the agricultural burden on to domestic consumers. When the government is giving free power to agriculture, it should bear or reimburse the FSA amount of the agricultural sector, says People's Monitoring Group on Electricity Regulation convener M Thimma Reddy.

Telangana Electricity Employees JAC leader K Raghu says domestic consumers should be exempted from FSA of agriculture consumers.

According to APERC guidelines, the FSA, as worked out, will be distributed among all categories of consumers that existed in the quarter. However, the consumption by the agricultural sector will be taken as estimated by distribution licences and approved by the commission till the commission is satisfied that metering of agricultural consumption is complete.

But, consumers argue that the government, if wanted to reimburse the FSA amount of the farm sector, can do it without meters.

In the first quarter _ April to June _ the demand for power by the agricultural sector was at its peak and the government purchased power paying double the amount from private producers like Lanco _ Rs 5.50 to Rs 6 per unit. To save the crops the government paid through its nose and domestic consumers are facing the music now. The domestic and agricultural power consumption was more or less equal in the first quarter. If the government reimburses the FSA of the agricultural sector, the domestic consumers can breathe easy.





Discom-wise consumption

during April-June



CPDCL

Total : 7912.81 mu

Agriculture: 1757.46 mu

Domestic : 1821.40 mu


NPDCL

Total : 2193.57 mu

Agriculture: 698.54 mu

Domestic : 601.00 mu


EPDCL

Total : 3069.55 mu

Agriculture: 449.36 mu

Domestic : 909.28 mu

SPDCL

Total : 4112.63 mu

Agriculture: 1119.80 mu

Domestic : 1164.78 mu