CPI(M) challenges Andhra Pradesh plan for separate rural power utility, cites privatisation fears

The Communist Party of India (Marxist) [CPI(M)] has formally objected to the Andhra Pradesh government's proposal to create a separate power distribution entity for agriculture and rural consumers. In a representation to the Andhra Pradesh Electricity Regulatory Commission (APERC), the party argued that the proposed Andhra Pradesh Rural Agriculture Power Limited (APRAPL) would ultimately burden consumers and pave the way for privatisation of the power sector.

Addressing a press conference in Vijayawada on June 21, CPI(M) state secretary V. Srinivasa Rao and other leaders described APRAPL as a 'deemed DISCOM' existing only on paper. They asserted that the proposed entity lacks the infrastructure, financial resources, and operational capabilities required under the Electricity Act, 2003. The party questioned how APRAPL could function independently when it neither owns a power distribution network nor basic equipment such as transformers. Under the current proposal, electricity supply operations and new agricultural connections would still be handled by the existing distribution companies (DISCOMs).

The CPI(M) leaders alleged that the new entity is designed to strengthen a controversial power purchase agreement involving Adani Solar, the Solar Energy Corporation of India (SECI), and Andhra Pradesh's DISCOMs. They claimed that this agreement, signed during the previous YSR Congress Party government, could result in losses exceeding ₹1 lakh crore to the state over 25 years. The party demanded the cancellation of the agreement and an expedited hearing of the related case pending before the High Court.

According to the CPI(M), electricity supply to agricultural pumpsets and lift irrigation schemes should continue through the existing three state DISCOMs without any change. They expressed concern that creating a separate agricultural DISCOM could eventually lead to the withdrawal of free power to farmers, increased tariffs for urban consumers, reduction of cross-subsidies, and greater concessions for large industrial consumers. The party framed the proposal as part of a broader effort to facilitate the entry of private distribution companies into the power sector.

The APERC had issued a public notice inviting objections and suggestions on the proposal by June 22. The CPI(M) urged consumers, farmers, and the public to oppose the plan. The party also called on the state government to withdraw the proposal in the interests of farmers, rural consumers, and the public power distribution system.

Note: The article presents the views of CPI(M) as reported. The Andhra Pradesh government's rationale for the proposal is not detailed here.