TS Govt, Discoms to execute MoU with centre to join in Uday scheme: KCR

• In recognition of the efforts put in by all sections of the employees, KCR informed that the Govt has decided to regularize around 20000 outsourced personnel working in TRANSCO, GENCO and Distribution Companies and also regularized the services of 1175 contract JLMs.

Hyderabad, Jan 4 (Maxim News): Telangana Government and Distribution companies are executing an MoU with Union Government at New Delhi here on Wednesday to join in Ujwal Discom Assurance Yojana (UDAY Scheme) to relieve the financial burden of the distribution companies.

This was stated by Chief Minister K Chandrasekhar Rao in the Assembly on wednesday during a short discussion on Power.

At the time of inception of Telangana, the state was reeling under severe power cuts with a shortage of 2700 MWs during peak demand, 4 to 8 hours load relief to the domestic and other customers and 2 day power holidays to the industries, the Chief Minister said.

The 2 Discoms in the State are having a long term debt of Rs.11897 crore (TSSPDCL – Rs 7392 crore and TSNPDCL – Rs 4505 crore) as on September 30, 2015 and virtually in the debt trap, Mr Rao stated and said due to the neglect of Telangana in the erstwhile united Andhra Pradesh, there was no proper planning or forecast of the demand. There were several agitations protesting against irregular power supply especially to the farming sector.

To relieve the financial burden of the Distribution Companies and consumers, the State has decided to join the UDAY scheme launched by the Centre, Mr Rao said in the House.

The State Government is taking over 75 per cent of the Discoms debt amounting to Rs 8923 Crore out of Rs 11897 crore while the the balance loan amount of Rs 2974 Crore will be restructured by the Discoms by issuing bonds with Government Guarantee, KCR said.

As a result of taking over the loan by the State Government, there is a relief of interest burden of Rs 890 Crore per annum to the two Discoms and consumers at large, Mr Rao said, adding that discoms will be able to raise funds with competitive rates from the financial institutions towards capital expenditures.

The Telangana government is already providing a subsidy of Rs 4,584 crore to the Discoms/Consumers, KCR added. (Maxim News)

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