Exploitation, Discrimination and Neglect of Power Sector in Telangana Region In the Combined State of Andhra Pradesh By

1. Exploitation, Discrimination and Neglect of Power Sector in Telangana Region In the Combined State of Andhra Pradesh By K.Raghu Coordinator Telangana Electricity Employees Joint Action Committee (TEEJAC)

2. Agenda

3. History of Telangana Power Sector • Hyderabad State Electricity Department (HSED) was established in 1910. • Madras State Electricity Department (MSED) was established in 1927. • Andhra State Electricity Department (ASED) was established in 1953 with the formation of Andhra State. • Andhra Pradesh Electricity Department (APED) was established in 1956 after the formation of Andhra Pradesh. • APSEB was established in 1959.

4. History of Telangana Power Sector • APSEB was unbundled into APGENCO, APTRANSCO and 4 Distribution companies (APEPDCL, APSPDCL, APCPDCL and APNPDCL) after 1999. • APCPDCL and APNPDCL serve Telangana Region (including Anantapur and Kurnool). • APEPDCL and APSPDCL serve Andhra/Rayalaseema Regions.

5. Injustice in Power Sector Development in Telangana • Telangana region is endowed with abundant natural resources like water and coal which are essential for the development of Power Sector. • However most of these resources have been diverted for the development of other regions of Andhra Pradesh. • This led to underdevelopment of power production infrastructure, and loss of employment opportunities in Telangana.

7. Installed Generating Capacity in AP Total State Telangana 37% Seemandhra 63% Telangana 27% Seemandhra 73% Telangana 31% Seemandhra 69%

8. APGENCO Projects Under Construction & Under Development (MW) Telangana 29% Seemandhra 71%

9. Injustice in Power Sector Development in Telangana • The Total Power Demand in Telangana region is around 56%-60% of the total demand in Andhra Pradesh, where as the installed capacity in this region is only 37%. • If installed capacity on account of ‘infirm’ Hydel stations is ignored, installed capacity in Telangana region is only 17% of the total installed capacity of AP.

10. Reasons for Under Development • Diversion of Projects from Telangana Region. • Not Taking up of Several Projects in Telangana Region. • Neglect of Telangana Power Sector.

11. Diversion of Projects from Telangana Region • Shifting of Manuguru (Bhadrachalam) Power Project from Manuguru to Vijayawada. • Construction of Rayalaseema Thermal Power Plant (RTPP). • Handing over of Super Thermal Power Plant in Ramagundam, Karimnagar to NTPC.

12. Diversion of Projects from Telangana Region

13. Diversion of Projects from Telangana Region Financial Burden due to handing over of VTPS & Rayalaseema Thermal Power Project (RTPP). 38% Excess 80% Excess ARR Filings of APCPDCL 2010-11

14. Diversion of Projects from Telangana Region AP GENCO Thermal Energy Availability (Mus)

15. Diversion of Projects from Telangana Region Additional Burden on Consumers due to shifting of Plants from Telangana Region

16. Projects not taken up in Telangana Region • Erstwhile APSEB had conducted detailed site investigations and identified several locations in Telangana region suitable for setting up power plants. • Many of these locations were identified long back 1966-67. • Successive governments have neglected construction of these projects and preferred to concentrate on Andhra region • The reasons for not taking up these Projects were never stated any where.

17. Projects not taken up inTelangana Region

18. Neglect of Telangana Power Sector • Delay in Construction of Sagar Tail Pond Dam. • Kinnerasani waters to Dhavaleshwaram. • Telangana Power Sector Lands to Andhra Capitalists. • Neglect of Telangana Region in various electrification schemes taken up by Central Government.

19. Neglect of Telangana Power Sector Electrification Schemes • Abnormal Delays in • Construction of Sub-Stations for Lift Irrigation Projects. • Implementation of High Voltage Distribution System (HVDS). • Indiramma Programme. • Rajiv Gandhi Grameen Vidyutikaran Yojna (RGGVY) programme. • Neglect in Setting Up Departmental Stores, Hot lines Sub-Divisions in APTRANSCO. • Execution of works- Regionwise representation of contractors

20. Lift Irrigation Projects Telangana Lift Irrigation Schemes

21. Lift Irrigation Projects Andhra Lift Irrigation Schemes

22. Lift Irrigation Projects Andhra Lift Irrigation Schemes

23. HVDS Scheme Implementation of HVDS to Agricultural Pump Sets 73.1% 26.9% 12.73% 33.85%

24. Indiramma Scheme • Government of Andhra Pradesh has launched “Indiramma” (Integrated Novel Development in Rural Areas and Model Municipal Areas) scheme from 1st April 2006 76.1% 23.9% No.of connections

25. RGGVY Scheme • Rajiv Gandhi GrameenVidyutikaranYojna (RGGVY) programme: 70.5% 29.5%

26. Departmental Stores • Neglect in setting up of Departmental Stores & Hotline Sub-Divisions • With 13 Districts in Andhra region have 7 departmental stores and 7 Hotline Sub-divisions. • With 10 Districts in Telangana region have only 1 departmental store (created 50 years ago) and 2 Hotline Sub-Divisions

27. Story of APCPDCL • APSEB was unbundled into APGENCO, APTRANSCO and Four Distribution Companies on 01-02-1999 as a result of enactment of Andhra Pradesh Electricity Reform Act 1998. • Originally it was contemplated to have only Telangana districts in APCPDCL • Later, two Andhra districts, Anantapur and Kurnool were included in APCPDCL. • This made APCPDCL unwieldy and half of the states electricity demand (46%) comes from APCPDCL while other 3 discoms contributing only 54%.

28. Story of APCPDCL • This was done with the intention of paving way for Andhra People to enter key administrative and managerial positions. • Asexpected almost all the directors and Chairmen of APCPDCL appointed since the formation of the company belonged to Andhra region. • Only recently, when the demand for Telangana reached its pinnacle, Andhra rulers tried to assuage the feelings of Telangana people by appointing two directors from Telangana region in the month of January, 2010.

29. Story of APCPDCL • This has also allowed many employees from Andhra region find their way to Hyderabad pushing aside the employees of Telangana region. • The larger size of APCPDCL has resulted in many problems for the consumers of the Company in terms of quality of service. • The spirit of reform process was thrown to winds by Andhra rulers for their insatiable greed for power.

30. Execution of Works • APSEB and its successor entities dominated by Andhra people have encouraged contractors of their region through various means. • Obviously majority of registered contractors with power utilities belong to Andhra region. • For example, in APTRANSCO, out of 30 registered contractors 25 belong to Andhra region and only 5 contractors belong to Telangana region.

31. Agenda

32. Employment in Telangana • Power sector creates ample Employment in various segments ie Generation, Transmission and Distribution. • Each major generating station requires thousands of employees and corresponding transmission and distribution networks require even more number of employees. • Decisions of the government in creation of power infrastructure play very important role in creation of employment to various regions.

33. Employment in Telangana • Appointments of Chairmen in Power Sector

34. Employment in Telangana • Appointments of Board of Directors in Power Sector

35. Employment in Telangana • Appointments of Board of Directors in Power Sector

36. Employment in Telangana • Loss of Jobs to Telangana Youth • Telangana youth have lost thousands of jobs in power sector mainly due to three reasons • Firstly, diversion of projects from Telangana region to Andhra region. • Secondly, non-execution of potential generation projects in Telangana region as planned. • Thirdly, non implementation of Presidential order for 3 ½ decades.

37. Diversion of Projects • Loss of jobs due to diversion of Generation Plants from Telangana region to other regions

38. Loss of Employment • Loss of Jobs to Telangana Youth • The total number of posts lost by Telangana region by diversion of projects is 3806 excluding NTPC Ramagundam plant. • A rough estimate of posts lost due to transfer of RTS to NTPS for Telangana is about 3000. (It is understood that only 150 class IV employees work in NTPC, Ramagundam TPP). • Total posts lost due to diversion of projects 3806+3000=6806

39. Loss of Employment • Loss of Jobs to Telangana Youth • Total posts lost due to not taking up of projects • Capacity lost: 6337MW • Posts lost: 7145 No.s • Assuming • 0.8 nos. per MW for Hydel Stations and • 1 person per MW for Gas based power plant, • 1.6 person per MW for Thermal based power plant.

40. Non-implementation of Presidential order in APSEB and its Successor entities • What is presidential order? • Certain safeguards in employment were given to the people of backward region of Telangana, so that they can survive and get their rightful share in employment. • Supreme court on 16-10-1972 held that Mulki rules are constitutional. • The Andhra leaders never wanted any special protection to be given to the people of Telangana in spite of their solemn assurance given in Andhra assembly. • The violent agitation that followed in Andhra forced the Prime Minister to declare Six Point formula which resulted in rendering the continuance of Mulki rules redundant.

41. Non-implementation of Presidential order in APSEB and its Successor entities • As a result of Six point formula Presidential order was issued in 1975. • It was never implemented in erstwhile APSEB. • Even the successor entities of APSEB were reluctant to implement the Presidential order. • However pressure from the movement for Telangana state forced the power utilities to implement Presidential order from the year 2009 onwards, but in a limited way, that too with so many distortions. • Non implementation of Presidential Order for 34 years has resulted in loss of many of jobs to Telangana youth.

42. Non-implementation of Presidential order in APSEB and its Successor entities Before Presidential order implimentation (APCPDCL)

43. Non-implementation of Presidential order in APSEB and its Successor entities After Presidential order implimentation

44. Non-implementation of Presidential order in APSEB and its Successor entities • Loss of AE Elec posts in APCPDCL 2003-2009 • = 640*(0.79-0.42) • =237 • Estimation of total loss of jobs in power sector (Other than workmen) • =13620*0.56*(0.79-0.42) • =2822

45. Total Loss of Employment for Telangana Region Total cadre strength in AP Power Sector is 78000 Percentage of loss to Telangana Region is 21.5%

46. Agenda

47. Telangana Power Sector – Myths & Relalities • Andhra Rulers have systematically exploited, discriminated and neglected Telangana power sector. • On the other hand started spreading wrong information that Telanagana region is the major beneficiary due to the formation of combined state of Andhra Pradesh. • Protagonists of “Samaikyandhra” mainly focus on (i) Tariff Subsidies/Agriculture consumption and (ii) Percapita consumption (iii) Investments (iv) Development of Hyderabad City in support of their argument, which are totally baseless.

48. Agenda Telangana Power Sector – Myths & Relalities • Subsidies to Telangana Power Sector • Subsidy figures quoted by GoAP are misleading and misrepresentation of facts. • Shift from Differential Bulk Supply Tariff (D-BST) to Uniform Bulk Supply Tariff (U-BST) • APTRANSCO was the bulk supplier of electricity to DISCOMS prior to 2000. • APTRANSCO followed the system of D-BST to DISCOMS based on consumer mix. • As per Electricity Act 2003, trading was separated from APTRANSCO on 09-06-2005. • This resulted in adoption of U-BST.

49. Agenda Telangana Power Sector – Myths & Relalities • Shift from Differential Bulk Supply Tariff (D-BST) to Uniform Bulk Supply Tariff (U-BST) • Allocation of Generating Capacities among DISCOMS

50. Agenda Telangana Power Sector – Myths & Relalities • Shift from Differential Bulk Supply Tariff (D-BST) to Uniform Bulk Supply Tariff (U-BST) Differencial BST Vs Uniform BST for DISCOMS