In a significant move to reform the agricultural power sector in Andhra Pradesh, AP Rural Agriculture Power Limited (APRAPL) has submitted a fresh application to the Andhra Pradesh Electricity Regulatory Commission (APERC) seeking the grant of a Deemed Distribution Licence. APRAPL, formerly known as Andhra Pradesh Green Energy Corporation Limited, has filed the application under Section 14 of the Electricity Act, 2003, along with the relevant APERC regulations. The proposed licence is aimed at creating a dedicated distribution entity focused exclusively on supplying reliable and affordable solar power to agricultural consumers and farmers across the state.
The latest application comes after several administrative and policy developments within the state government. APRAPL had originally applied for a distribution licence in December 2021, but the process was later kept in abeyance due to administrative restructuring and delays in power supply from generation developers. In January 2026, the Andhra Pradesh government reconstituted the Board of Directors of APRAPL, following which APERC directed the company on May 8, 2026, to submit a completely fresh application under Schedule-2 of APERC Regulation No. 10 of 2013. In compliance with the directive, APRAPL submitted the application along with the prescribed online fee of ₹90,000.
A major component of the initiative is the execution of a large-scale 7,000 MW tripartite Power Sale Agreement (PSA) with the Solar Energy Corporation of India (SECI). The agreement has been structured as a back-to-back Power Purchase Agreement aimed at supplying renewable energy for agricultural use over a 25-year period. The annual power consumption under the agreement has been capped at 17,000 million units. Recently, the state government approved the scheduling and procurement of an initial 300 MW capacity under this arrangement, which became operational from March 1, 2026. The larger objective of the programme is to provide free solar power to farmers while reducing the long-term subsidy burden on the state.
To facilitate operational coordination, the Andhra Pradesh government issued an order in April 2026 establishing a framework among all stakeholders. Following this, APRAPL signed a Memorandum of Understanding with the three existing state power distribution companies (APDISCOMs). The MoU is intended to ensure seamless power supply operations and maintain service quality across agricultural feeders. At the same time, the government has granted in-principle approval for the phased transfer of important 11kV agricultural feeder infrastructure, including electricity lines and distribution transformers, from the DISCOMs to APRAPL as procurement activities expand further.
Through the petition, APRAPL has also requested APERC to recognize it as a “deemed distribution licensee” and a “drawee entity” under Central Electricity Regulatory Commission rules. This status would allow the company to directly procure and distribute electricity using the Inter-State Transmission System. Fully backed by the Andhra Pradesh government, the initiative represents a major step toward integrating renewable energy into the agricultural sector and improving long-term sustainability in rural power supply across the state.
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