APRAPL Seeks APERC License To Supply Solar Power Exclusively To Andhra Pradesh Farmers

APRAPL (M/s AP Rural Agriculture Power Limited) has approached the Andhra Pradesh Electricity Regulatory Commission (APERC) with a fresh petition seeking the grant of a Deemed Distribution Licence under Section 14 of the Electricity Act, 2003. The application was submitted on May 25, 2026, and aims to enable the company to supply retail electricity exclusively to agricultural consumers across Andhra Pradesh.

The company, formerly known as Andhra Pradesh Green Energy Corporation Limited, had first applied for the licence in December 2021. However, the process was kept on hold due to administrative requirements and delays related to power supply arrangements. Following directions issued by APERC on May 8, 2026, APRAPL submitted a fresh application in accordance with Schedule-2 of APERC Regulation No. 10 of 2013. The revised filing became necessary after the restructuring of the company’s Board of Directors earlier this year through Government Order Rt. No. 1. APRAPL has also paid the required online application fee of ₹90,000.

A major part of APRAPL’s proposed operations is linked to a large renewable energy procurement programme. The Government of Andhra Pradesh is a party to a Power Sale Agreement (PSA) signed with the Solar Energy Corporation of India (SECI) for the procurement of 7,000 MW of solar power. As APRAPL becomes operational, the rights and obligations of the state under this agreement are being transferred to the company.

At present, solar developers have already made 1,350 MW of power available for supply. Following government approval, an initial 300 MW of solar power has been scheduled and will be supplied from March 1, 2026. The power is being integrated without any additional Inter-State Transmission System (ISTS) charges or losses up to the state boundary, helping improve the economics of power procurement.

To support its operations, APRAPL signed a Memorandum of Understanding (MoU) with Andhra Pradesh’s three existing distribution companies on April 27, 2026. The agreement establishes a framework for cooperation in delivering reliable and affordable electricity to agricultural consumers. The initiative is also expected to reduce the financial burden of agricultural power subsidies on the state government.

In addition, the Andhra Pradesh government has provided in-principle approval for the phased transfer of key distribution infrastructure, including 11 kV agricultural feeder lines, distribution transformers, and low-tension lines, from the existing DISCOMs to APRAPL.

The company is also seeking recognition as a “drawee entity” under Central Electricity Regulatory Commission regulations. This status would allow APRAPL to independently apply for General Network Access for Renewable Energy from the Central Transmission Utility of India Limited. Backed by the state government, APRAPL has requested a 25-year licence period, which, if approved, could establish a dedicated clean energy distribution model focused entirely on the agricultural sector.