Under PM Kusum, the AP government has proposed projects to generate electricity for 3 lakh agricultural connections in the first phase. For this, the government has sent DPRs to the Center for setting up 1185 MW projects. Later, the government’s idea is to take permission for projects for another 2 lakh connections. The government intends to make 3725 MW of mini solar power projects available in phases.
The Center will provide Rs. 1.04 crore per megawatt as a subsidy for the projects set up under this scheme. DISCOMs have identified 5983 acres of land required for the establishment of solar power projects through the PM Kusum scheme.
In Andhra Pradesh, the contractors have quoted a minimum price of Rs. 3.19 and a maximum price of Rs. 3.60 per unit in the tenders for setting up mini solar power projects along feeders under the PM Kusum scheme. DISCOMs had invited circle-wise tenders in March this year for setting up 1185.80 MW projects under this scheme. They will be allotted to the contractors soon.
The central government has set a target of completing the projects by March next year. In view of this, the officials have expedited the process of allotment of projects. For these, identification of lands of 5983 acres has already been completed. DISCOMs have invited tenders for setting up 610 MW projects in 9 circles under SPDCL.
3055 acres of government and private lands have been identified for setting up projects in Sri Satya Sai, Anantapur, Nandyal, Kurnool, Nellore, Tirupati, Chittoor, Annamayya and Kadapa circles. 1842 acres of government and private lands have been identified for setting up 355.50 MW generation projects in 4 circles under CPDCL. 1086.5 acres have been identified for setting up 220.30 MW projects under EPDCL.
The state government is currently paying about Rs. 12,000 crores annually as subsidy to DISCOMs to provide free electricity to agricultural connections. The subsidy burden for the government will be reduced to some extent due to the establishment of mini solar power projects.
Presently, the average price per unit, including current purchase, maintenance costs, supply and distribution losses, is Rs.7.50. Under PM Kusum, the contractors have quoted only a maximum of Rs. 3.60 per unit. Accordingly, the government will have a surplus of Rs. 3.90 per unit. Officials say that the supply losses will be further reduced due to the projects being located near the feeder.
