The Andhra Pradesh Government has been slipping into a deeper financial crisis with each passing day. It was so desperate that the Government had to open its own liquor shops even during the high Coronavirus threat for additional resources. Now, the Jagan Reddy regime says it is going to bear an additional cost of Rs. 1,500 Cr for fixing smart meters on agriculture pumpsets. Not a single rupee will be charged from the farmers. This promise is being made at a time when the Government itself is repeatedly saying that it is already spending Rs. 8,000 Cr yearly on free power scheme.
On the other hand, Chief Minister Jaganmohan Reddy is saying that another Rs. 1,700 Cr was being spent to improve the transmission network so as to ensure quality supply for nine hours. Already, the Government says it is spending Rs. 49,000 on each farmer towards implementing the free power scheme.
The Central Government has proposed just 0.25 per cent hike in borrowings limit if free power reforms were implemented by the States. So, Jagan regime would be able to get just another Rs. 5,000 Cr loans. Analysts say that the CM was obviously shooting two birds at shot. First, his move on metering farm pumpsets would get the total blessings of PM Modi. Secondly, another Rs. 8,000 Cr free power scheme would be brought under Casth Transfers scheme list. Everybody knows how Jagan Reddy is very fond of his most adored concept of Cash Transfer schemes that, in his belief, would help him to continue his rule for the next 30 to 35 years.
