The State Cabinet has decided to establish the A.P. State Financial Services Limited, a Non-Banking Finance Corporation (NBFC), under the Finance Department.
The new entity will help in proper utilisation of funds, according to Information and Public Relations (I&PR) Minister Perni Venkataramaiah (Nani).
Gujarat model
Addressing the media after the Cabinet meeting on Wednesday, Mr. Nani said that the government departments could park their surplus funds with the corporation and earn interest on it.
“It will help in better and optimum utilisation of the resources. The Government of Gujarat had done a similar exercise in 1992 and achieved good results,” the Minister said.
Agri council
Mr. Nani said the Cabinet also decided to set up the A.P. State Agriculture Council on lines of the medical council and the higher education council to monitor the standards, infrastructure, agricultural and horticultural courses offered at colleges and universities.
The proposed council would also be a regulating mechanism for supply of quality seed, fertilizers, pesticides, irrigation technology, marketing and promotion of agriculture produce. It would also monitor the functioning of the public and private organisations in the sector, he said, adding, “There is no such council at the national level.”
Free power
The Cabinet approved the proposal to establish the A.P. Green Energy Corporation for providing free power for nine hours during day time to the agricultural sector. The Genco would be permitted to establish solar parks to generate 10,000 Mega Watts.
“The Non-Conventional Energy Resources Ministry will provide financial assistance of ₹20 lakh per MW. The State government will tap these funds,” the Minister said.
“It is estimated that ₹35,000 crore to ₹40,000 crore is required for the project. The Genco can sell power to the government at ₹3 per unit, while it is ₹7 per unit now. The government is incurring a huge expenditure on free power to agriculture. The subsidy will be around ₹8,000 crore. Between 50,000 and one lakh new pump-sets will be added every year,” the Minister said.
The demand for power and subsidy was on the rise. The previous government paid ₹3,000 crore to ₹4,000 crore towards free power to the Discoms. As a result, the Discoms were debt-ridden. About ₹32,000 crore dues were pending.
