The Andhra Pradesh government has replaced the directors of all five of the state’s debt-ridden power companies. This move aims to revamp the finances of electricity sector in Andhra Pradesh, reported Business Standard.
The appointments have been made considering the state’s power utilities cumulative debt of Rs 1.12 trillion in FY24, up 79%, or Rs 49,596 crore, from Rs 62,826 crore in FY19.
Strategic Appointments to Drive Growth
The recently appointed 16 officials, according to Business Standard, include some former employees, of state-run banks, major power firms such as NTPC, the private sector, the Indian Railways Accounts Department and senior executives promoted from within the state’s power utilities.
The government interviewed nearly 140 candidates and followed a series of steps to ensure the new recruits bring in a balance of competence, experience and understanding of key issues.
“Nara Lokesh, chairman of the group of ministers on job creation, closely monitored the hiring process and pushed for the appointment of the best talent to revamp the power sector,” a source told Business Standard.
The companies include Andhra Pradesh Power Generation Corporation (APGENCO), Transmission Corporation of Andhra Pradesh (APTRANSCO) and the three distribution companies (discoms) — Andhra Pradesh Southern Power Distribution Company (APSPDCL), Andhra Pradesh Northern Power Distribution Company (APNPDCL) and Andhra Pradesh Central Power Distribution Company (APCPDCL), reported Business Standard.
The report also revealed that top hires from State Bank of India include Abid Rahman (director, finance in APSPDCL) and S Venkateswarlu (director, finance in APCPDCL). While Rahman held leadership roles at the state-run bank, Venkateswarlu was its chief general manager prior to this appointment.
K Seetha Rama Raju, appointed as director (finance and commercial) at APGENCO, is from the Indian Railway Accounts Service and previously served as deputy chief administrative officer of the Indian Railways. Similarly, K Srinivas, appointed as director of the AP Power Development Corporation (APPDCL), was executive director at NTPC and most recently vice president at Jindal Power.
“We wanted to ensure continuity in operations too. Hence, some directors were promoted from state power utilities too," the source added.
The state government is also relying on sweeping reforms and new energy policies to address systemic issues in addition to strengthening leadership.
Policy Vision and Reforms
Upon taking charge on June 12, 2024, the Chief Minister Nara Chandrababu Naidu-led coalition government had promised to revamp the electricity sector, reduce losses and lower power tariffs.
The state had also launched its Integrated Clean Energy Policy-2024 in October 2024, aiming for over 160 GW of renewable energy capacity and attracting investments worth Rs 10 lakh crore. However, the power sector continued to struggle with financial challenges, including unpaid subsidies and operational expense loans.
According to The Hindu BusinessLine, Chief Minister Nara Chandrababu Naidu has emphasised the need to address legacy losses of Rs 1.29 lakh crore and implement Power Sector Reforms 3.0 to revitalise the sector.
