The Central Government has announced that it has ordered the release of Rs 3300 crore loan to the Andhra Pradesh power sector. The loan will fall under the second tranche of the Atmanirbhar Loan.
The decision was announced by Union Minister for Power and New & Renewable Energy RK Singh during his meeting with Andhra Pradesh energy secretary Srikant Nagulapalli, AP Genco G Saiprasad in New Delhi. The power minister directed officials to release the amount to the state during the meeting.
It has been reported that when the AP officials explained the poor financial status of AP Discoms due to various reasons, the minister assured that the Union government would provide all support for easing the excess financial burden on AP Discoms.
The officials told the minister that the state government had already sanctioned a total amount of around Rs 17,904 crore in 2019-20 towards clearing pending tariff subsidy dues and other charges. The government would also bear a subsidy burden of Rs 11,000 crore for 2020- 21.