Naidu pushes power purchase cost cuts, targets Rs 4 per unit

Vijayawada: Chief minister N Chandrababu Naidu has directed officials to intensify efforts to reduce power purchase costs and bring down the average price to ₹4 per unit, while ensuring that the burden on consumers is minimised. He also asked the officials to prepare a clear roadmap to repay the mounting debts of power utilities without increasing tariffs.During a review of the energy department at the secretariat on Tuesday, the chief minister stressed the need for comprehensive reforms across the power sector. The officials informed him that, with planned reforms in various segments, the power purchase burden could be reduced by ₹1.32 per unit by 2028–29. They said steps are being taken to bring down the purchase cost to ₹4.10 per unit by then, but the chief minister insisted on achieving the ₹4 target.He emphasised adopting new technologies and innovations to improve efficiency and reduce costs. The chief minister noted that efficient management of power utilities already resulted in savings of about ₹339 crore in the 2025–26 financial year and called for scaling up such measures.He highlighted that the energy sector is undergoing rapid transformation globally, with a strong shift towards green energy, which is expected to be a game-changer in the coming years.The chief minister further instructed officials to establish an energy university to promote research, innovation, and advanced technologies in the sector. He called for strengthening the centre of excellence for energy transition and setting up an incubation fund to support startups, providing margin money assistance for innovative ideas. He emphasised that power utilities in the state should evolve to offer consultancy services to other states and organisations. The chief minister noted that the govt already avoided passing on the true-up burden to consumers and achieved a tariff reduction of 13 paise through "true-down" adjustments. He said further reduction in power purchase costs would directly benefit the public.