Andhra CM reassures industry about power crisis | SupportBiz

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Andhra CM reassures industry about power crisis

Andhra Pradesh Chief Minister N Kiran Kumar Reddy assured the industry that current electricity crisis would ease soon, as steps are being taken to narrow the gap between the demand and supply. Addressing the southern regional meeting of the Confederation of Indian Industry (CII), Reddy said that the Gas Authority of India Limited (GAIL) had agreed to supply additional gas to the state.

"The GAIL has promised to supply the gas in a week or 10 days, and this will be sufficient to generate 500MW of power," he told the captains of industry.

GAIL has agreed to supply 2.5MMSCMD (Million Metric Standard Cubic Metre a Day) Regassifified Liquefied Natural Gas (RLNG) to the state.

"Once this is done, things will be much better," the chief minister said while describing the current crisis a 'temporary phenomenon'.

Reddy also urged GAIL to work out a plan at least for the next two years to supply gas for generating 1,000MW.

The state is reeling under an unprecedented electricity crisis, severely affecting the industry and hitting supply to domestic sector.

A three-day power holiday in a week was imposed on the industrial sector recently, in addition to daily four-hour cut in the peak time. In cities and towns, three to six hours' of bpower cut is already in force for domestic consumers.

The chief minister told the meeting that the gap between power generation and consumption is 34 to 35 Million Units (MU) per day. The consumption has gone up by 15 percent over the last year.

Reddy attributed the crisis to the fall in gas supply and decline in the hydel power generation. The state has the capacity to generate 2,750MW of power from gas-based plants. Gas supply, which was 75 percent earlier, recently came down to 34 percent, making it difficult for the plants to function.

The chief minister said that hydel plants, which have a capacity of 18MU, were currently generating only six MU.