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India: AP Govt Plans Transfer of Power Assets to APPFCL

The government of Andhra Pradesh is planning to transfer the assets of state power generation companies (gencos) and distribution companies (discoms) to the Andhra Pradesh Power Finance Corporation (APPFCL).

 

The transfer is being undertaken to raise funds that may also help clear its power sector dues. Andhra Pradesh power utilities have identified certain freehold properties and expressed their willingness to transfer those assets to APPFCL at the book value of the assets to strengthen the assets position of APPFCL.

 

The state’s utilities in the power sector include Andhra Pradesh Transmission Corporation (APTRANSCO), Andhra Pradesh Power Generation Corporation (APGENCO), Andhra Pradesh Southern Power Distribution Company (APSPDCL), Eastern Power Distribution Company of Andhra Pradesh (APEPDCL), and AP Power Development Company (APPDCL).

 

The order comes against the backdrop of the National Democratic Alliance government’s plan for a Rs. 2.86 trillion distribution reform scheme to reduce electricity losses to less than 12 percent, negate tariff gaps, and implement compulsory prepaid smart metering across the power distribution chain, including in the 250 million households.

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