The Apseb tripartite agreement, also known as the Andhra Pradesh State Electricity Board tripartite agreement, was a historic agreement signed in the year 2000 between the state government of Andhra Pradesh, the central government of India, and the then APSEB (Andhra Pradesh State Electricity Board).

The agreement aimed to reform the power sector in Andhra Pradesh by separating the generation, transmission, and distribution functions of the power supply chain, thereby improving efficiency, reducing losses, and encouraging private investment in the sector.

Under the agreement, the state government created three new entities, namely, APGENCO (Andhra Pradesh Power Generation Corporation Limited), APTRANSCO (Andhra Pradesh Transmission Corporation Limited), and APEPDCL (Andhra Pradesh Eastern Power Distribution Company Limited).

APGENCO was tasked with generating power, APTRANSCO with transmitting it, and APEPDCL with distributing it to the end consumers. The separation of functions was expected to bring in more accountability, reduce the scope of corruption, and improve the overall quality of services.

One of the primary objectives of the Apseb tripartite agreement was to reduce the revenue deficit of the power sector in Andhra Pradesh. In the pre-reform era, the APSEB was plagued by mounting losses due to inefficient operations and rampant corruption.

As a result, the state government had to subsidize the power sector heavily, leading to a massive revenue deficit. The tripartite agreement aimed to reverse this trend by improving the efficiency of the power sector and reducing the scope of corruption.

Another significant outcome of the Apseb tripartite agreement was the encouragement of private investment in the power sector. Before the reforms, the power sector in Andhra Pradesh was entirely controlled by the government, which resulted in a lack of innovation and technological advancements.

However, after the creation of APGENCO, APTRANSCO, and APEPDCL, private players were allowed to participate in all three functions, leading to a surge in private investment in the sector.

In conclusion, the Apseb tripartite agreement was a landmark reform in the power sector of Andhra Pradesh. The separation of functions and the creation of new entities improved the efficiency of the sector, reduced losses, and encouraged private investment. Today, the power sector in Andhra Pradesh is one of the most advanced and innovative in the country, thanks to the reforms initiated by the tripartite agreement.