Andhra plans to transfer power assets to APPFCL

Desperate times need desperate measures. The Andhra Pradesh government plans to transfer the assets of state power generation companies (gencos) and distribution companies (discoms) to the Andhra Pradesh Power Finance Corp. Ltd (APPFCL) to raise funds that may also help clear its power sector dues, according to two government officials.

The move by the government led by chief minister Y.S. Jagan Mohan Reddy aims to help the cash-strapped state borrow at competitive rates following a backlash from global investors over its decision to revise renewable energy contracts. Andhra Pradesh owes around ₹20,000 crore in unpaid bills to power generators.

This also comes against the backdrop of the Centre considering restriction of coal supplies and all sanctioned loans and funding to the state.