Telangana Power Shock: Rs. 81,516 Crore Debt Revealed in White Paper

Telangana Power | Hyderabad, Dec 21 (Maxim News): Deputy Chief Minister Bhatti Vikramarka said that the power sector is crucial for economic progress. He said that the situation of the power sector in Telangana is worrying.

He stated that the debt of the power sector is Rs. 81.516 crore. He said that there are arrears of around 29 thousand crores. he said that discoms are in debts. He expressed his anger that the previous government had left the power companies in the wind. It is stated that the Irrigation Department owes to power sector Rs. 14,190 crore.

The sixth day of the Telangana Assembly session began at 11 am on Thursday. the Deputy Chief Minister Bhatti Vikramarka released a white paper on Power Sector.

Telangana Power: White Paper

The Deputy Chief Minister said that the white paper is being introduced with the idea that the people of the state should know the actual situation regarding the problems of electricity production and the problems in the state.

Bhatti said that the power sector is playing a vital role in the economic progress and development of the state. He said reliable power supply is the backbone for industrial development, agricultural sector progress and service sector development. he said that quality power supply is very important for emergency services in the medical sector and for the survival of the transport and communication sectors.

He commented that the electricity also represents the quality of the style of the people of the state.

He said that in terms of finances and managements, the power sector is very necessary for the survival of the state.

Bhatti stated that at the time of formation of Telangana state, the power capacity of GENCO was 4,365.26 MW. He said that much before the formation of the state, the necessary planning work for 2,960 megawatt power stations in Telangana was undertaken with the foresight of the leaders of that day.

He said that after the formation of the state, the new power stations that were commissioned played a vital role in providing quality electricity in Telangana in the later years. Bhatti stated that during the drafting of the State Reorganization Act, the UPA government under the leadership of Sonia Gandhi made a special provision in the Act so that 18 hundred megawatts of electricity would be added to the installed power generation capacity in view of the electricity needs.

Telangana Power: BRS government

Bhatti said that only 1080 MW Bhadradri Thermal was started and completed by the BRS government after the formation of Telangana and the investment cost has increased due to the use of sub-critical technology against the standards in this project.

800 crore per annum in addition to the cost of Yadadri Thermal Power Project just for coal supply, the financial condition of the state’s power sector is very precarious, discoms have to spend Rs. 81,516 crore losses, power generation and supply companies Rs, 28,873 crore dues have to be paid, he said.

Various departments of Government dues are Rs. 28,842 crores to be paid to the DISCOMs. He said that 14,193 crores is owed by the Irrigation department.

He stated that these arrears are the main reason for the difficulties in electricity procurement. He said that non payment of the government adjustment costs of Rs. 14,928 crore has crippled the financial condition of the DISCOMs, resulting in the situation of having to incur huge debts for the survival of daily electricity.

Telangana Power: Mallu Bhatti Vikramarka

Bhatti made it clear that the government is committed to provide quality electricity by overcoming all the financial challenges.

At the heart of the issue lies the mismanagement of the energy sector under the previous government, according to Telangana’s current Energy Minister, Mallu Bhatti Vikramarka.

Years of fiscal imprudence have left DISCOMS in a debt trap, with accumulated losses exceeding Rs. 62,461 crores as of March 31, 2023. This staggering figure is further compounded by a current debt burden of Rs. 81,516 crores as of October 31, 2023.

To keep the lights on, DISCOMS have become heavily reliant on borrowings, primarily to meet power charges owed to generators. Ironically, despite incurring Rs. 30,406 crores in debt for working capital, DISCOMS still face outstanding dues of Rs. 28,673 crores for generation and transmission.

Adding fuel to the fire is the government’s own default on power bills. Its departments owe a staggering Rs. 28,842 crores to DISCOMS, with lift irrigation projects alone contributing Rs. 14,193 crores to this colossal figure. Unfulfilled true-up charges amounting to Rs. 14,928 crores further exacerbate the financial strain on DISCOMS.

Amidst the bleak scenario, the government has unveiled a White Paper outlining a comprehensive plan to turn the tide.

The focus lies on responsible financial management, transparency, and restructuring DISCOMS to improve operational efficiency. Whether this plan will be enough to navigate the treacherous waters of debt and ensure affordable, reliable power for Telangana remains to be seen. (Maxim News)

Telangana Power Shock: Rs. 81,516 Crore Debt Revealed in White Paper
Telangana Power Shock: Rs. 81,516 Crore Debt Revealed in White Paper

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