Telangana’s Power Crisis: Rs. 40,000 Crores Unpaid Bills and Subsidies Strain Electricity Sector

Telangana Power Sector in Peril: Rs. 40,000 Crores in Unpaid Bills and Subsidies Revealed

Hyderabad, December 06 – Startling revelations have emerged regarding the precarious state of the power sector in Telangana, with the government accumulating an astounding Rs. 40,000 crores in unpaid electricity bills and subsidies over the past decade. This financial mismanagement has plunged power companies into a crisis, jeopardizing the stability of the state’s electricity supply.

Unpaid Bills Soar to Rs. 25,000 Crores:

As of June 1, 2014, the outstanding bills owed by government and affiliated organizations to power companies stood at Rs. 1576 crores. Shockingly, this figure has surged to an alarming Rs. 25,000 crores as of November 30, 2023. The accumulated arrears encompass a range of government institutions, including lift irrigation projects, Hyderabad Metro Water Works, Panchayati Raj, Municipalities, and others.

Breakdown of Outstanding Bills (2014 vs. 2023):

1. Lift Irrigation:

• 2014: Rs. 135 crores
• 2023: Rs. 11,000 crores

1. Water Works:

• 2014: Rs. 362 crores
• 2023: Rs. 3650 crores

1. Panchayati Raj:

• 2014: Rs. 760 crores
• 2023: Rs. 4115 crores

1. Mission Bhagiratha:

• 2014: Rs. 44 crores
• 2023: Rs. 2050 crores

1. Municipalities:

• 2014: Rs. 93 crores
• 2023: Rs. 1310 crores

1. MAUD (Municipal Administration and Urban Development):

• 2014: Rs. 42 crores
• 2023: Rs. 370 crores

1. Other Government Institutions:

• 2014: Rs. 140 crores
• 2023: Rs. 2500 crores

Government Subsidies Pile Up at Rs. 15,000 Crores:

In addition to the unpaid bills, a substantial amount of Rs. 15,000 crores remains pending in subsidies related to electricity. This includes free electricity provided to 25.78 lakh agriculture connections, tariff subsidies for SC and ST categories, and discounts for various businesses such as power looms, spinning mills, and poultry farms.

Electricity experts express deep concern over the government’s failure to settle these subsidies and unpaid bills promptly. The delay in payments has forced power companies to mortgage assets, accumulate debts, and has even resulted in employees having to secure loans to receive their salaries.

As the new government assumes office, the onus is on them to urgently address and rectify the financial mismanagement in the power sector. Timely intervention is crucial to stabilizing the electricity supply and alleviating the burden on both power companies and the citizens of Telangana. The state eagerly awaits decisive action to mitigate this crisis and ensure a sustainable future for its power sector.