Andhra Pradesh Power Generation Corporation Limited is one of the pivotal organizations of Andhra Pradesh, engaged in the business of Power generation. Apart from operation & Maintenance of the power plants it has undertaken the execution of the ongoing & new power projects scheduled under capacity addition programme and is taking up renovation & modernization works of the old power stations. APGENCO came into existence on 28.12.1998 and commenced operations from 01.02.1999. This was a sequel to Government's reforms in Power Sector to unbundle the activities relating to Generation, Transmission and Distribution of Power. All the Generating Stations owned by erstwhile APSEB were transferred to the control of APGENCO.
Government of Andhra Pradesh realizing the declining tendency of the financial position of APSEB and considering the Government of India's Liberalized policy for attracting private investment into power sector, set up a high level committee in January 1995 to look into present working of the APSEB and suggest remedies for improvement. The committee after detailed deliberations with all the concerned and critical analysis submitted the report in which it suggested some recommendations.
Government of Andhra Pradesh considering the recommendations made by committee had embarked upon the AP Electricity REFORMS ACT in 1998.As a sequel the APSEB was unbundled into Andhra Pradesh Power Generation Corporation (APGENCO) & Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) on 01.02.99. APTRANSCO was further unbundled w.e.f. 01.04.2000 into "Transmission Corporation" (DISCOMS).
Thus APGENCO was incorporated as a company under the provisions of Companies Act, on 29.12.1998. According to the Andhra Pradesh Electricity Reforms Act, 1998, APGENCO commenced its business operations effective from 1.2.1999 and according to the memorandum of Association APGENCO has to Acquire, Establish, Construct and Operate Power generating stations. ll the Generating Stations owned by erstwhile APSEB (Andhra Pradesh State Electricity Board) were transferred to the control of APGENCO.