Government Extends Rs 1.50 Power Tariff To Aqua Farms

The state government has extended a concessional power tariff of Rs 1.50 per unit to all eligible aquaculture farms located in newly declared Aqua Zones and to aquaculture farms registered under the Andhra Pradesh State Aquaculture Development Authority (APSADA) Act and the Coastal Aquaculture Authority (CAA) Act. The concession will be effective from June 1, 2026, and is conditional on beneficiaries achieving a power factor of 0.9 to 0.95 by March 2027. Farms that fail to meet the prescribed power factor requirement will not be eligible for the subsidy and will be excluded from the concession until compliance is demonstrated.

The government estimated that around 6,500 currently registered aquaculture farms would benefit from the expanded concession and indicated that the benefit will also be available to other eligible farms that obtain APSADA or CAA registration in future from the date of their registration. The latest order expands the scope of a power subsidy that has been extended to the aquaculture sector over several years and reflects periodic adjustments to support producers. The tariff was earlier reduced from Rs 3.86 to Rs 2 per unit in 2018 for one year and from July 2019 the concessional rate was set at Rs 1.50 per unit to help farmers remain competitive in the global aqua-export market.

Subsequent orders have varied eligibility by farm size and location, and the government had previously limited the concession to aquaculture farms of up to 10 acres located in notified Aqua Development Zones. The latest decision follows a proposal submitted by the commissioner of fisheries through the animal husbandry, dairy development and fisheries department seeking wider coverage of the concession. Under the revised order the concession will cover all eligible farms in the newly declared Aqua Zones identified through the re-survey process as well as all currently registered farms that meet APSADA and CAA requirements.

The government said expenditure towards the subsidy would be met from the relevant budget head and directed the commissioner of fisheries to provide the required database of eligible aquaculture farmers to the power distribution companies for implementing the concession. The move is intended to reduce the financial burden on aqua farmers and to strengthen the competitiveness of the State’s aquaculture sector, which is a major contributor to the State’s export economy.

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