CPI(M) opposes separate agriculture power utility, urges APERC to reject proposal
The Communist Party of India (Marxist) (CPI(M)) has urged the Andhra Pradesh Electricity Regulatory Commission (APERC) to reject the State government’s proposal to form the Andhra Pradesh Rural Agriculture Power Limited (APRAPL) as a separate distribution company for agricultural and rural consumers.
Addressing a press conference in Vijayawada on Sunday, CPI(M) State secretary V. Srinivasa Rao and other leaders said the proposed entity lacks the infrastructure, financial strength and operational capacity mandated under the Electricity Act, 2003. They described APRAPL as a “deemed DISCOM” that exists only on paper.
The party alleged that the proposal is linked to the implementation of a power purchase agreement involving Adani Solar, the Solar Energy Corporation of India (SECI) and State DISCOMs. It claimed the agreement, signed during the previous YSR Congress Party government, could result in losses exceeding ₹1 lakh crore over 25 years, and demanded its cancellation.
CPI(M) leaders said electricity supply to agricultural pumpsets and lift irrigation schemes should continue through the existing three State DISCOMs. They cautioned that a separate agricultural utility could eventually lead to changes affecting free power for farmers, higher tariffs for urban consumers, reduced cross-subsidies and greater benefits to large industrial consumers.
They further alleged that the proposal could facilitate the entry of private players into the power distribution sector.
Questioning the viability of APRAPL, the leaders said the proposed entity does not have an independent distribution network or essential infrastructure such as transformers. They also noted that, even under the proposed structure, electricity supply operations and new agricultural service connections would continue to be handled by the existing DISCOMs.
With APERC inviting objections and suggestions on the proposal until June 22, CPI(M) appealed to farmers, consumers and the public to oppose it. The party also sought an expedited hearing in the High Court case related to the Adani-SECI power purchase agreement.
CPI(M) urged the State government to withdraw the proposal, saying it is in the interest of farmers and the public electricity distribution system.