In a decisive move to rejuvenate its power sector, the Andhra Pradesh government has initiated a comprehensive overhaul of its power utilities. This initiative includes the induction of seasoned professionals from esteemed institutions like NTPC and the State Bank of India (SBI) to enhance transparency and operational efficiency.
Addressing Mounting Debts and Operational Challenges
No sooner had he assumed office than Chief Minister N. Chandrababu Naidu issued a white paper detailing the fiscal crisis in the state power utilities. The paper revealed an unprecedented rise in debt from ₹62,826 crore in FY 2018-19 to ₹1,12,422 crore in FY 2023-24. It also highlighted sudden drops in major performance parameters, which compelled reform on a war footing.
Strategic Appointments to Drive Reform
As part of the reform strategy, the government has appointed 16 directors across various power entities, including Andhra Pradesh Power Generation Corporation Limited (APGENCO), Andhra Pradesh Transmission Corporation Limited (APTRANSCO), and the three distribution companies: Central Power Distribution Company of AP Ltd (APCPDCL), Eastern Power Distribution Company of AP Ltd (APEPDCL), and Southern Power Distribution Company of AP Ltd (APSPDCL).
Notable appointments include:
- Abid Rahman as Director Finance of APSPDCL, bringing experience from leadership roles at SBI.
- S. Venkateswarlu as Director Finance at APCPDCL, previously serving as Chief General Manager at SBI.
- K. Seetha Rama Raju as Director Finance and Commercial at APGENCO, with a background in the Indian Railway Accounts Service.
- K. Srinivas as Director of AP Power Development Corporation Limited (APPDCL), formerly Executive Director at NTPC and Vice President at Jindal Power Ltd.
These appointments aim to infuse the sector with expertise and drive the envisioned reforms.
Transparent and Merit-Based Selection Process
The recruitment process was marked by transparency and a focus on merit. More than 140 candidates were interviewed and selected the best of the competent, experienced, and deep thinking candidates of the challenges in the sectors. The Chairman, Group of Ministers on Job Creation, Nara Lokesh, supervised the process himself, stressing the need to appoint the best brains to fill the vacancies to catalyze the sectoral shift.
Power Sector Reforms 3.0: A Vision for the Future
Chief Minister Naidu has conceptualized a vision titled “Power Sector Reforms 3.0,” capitalizing on the achievements of earlier reform periods in his previous tenures. The transition now aims to fix the financial crisis of the sector, cut power losses, and make Andhra Pradesh an energy hub for the future.
