Telangana Power Sector Faces Bleak Financial Reality: White Paper Unveils Disturbing Figures
Hyderabad, December 21: The power sector in Telangana is confronting severe financial strains, as disclosed in a comprehensive white paper presented in the Assembly on Thursday. The detailed findings shed light on the following critical issues:
- Mounting Debts and Discom Losses:
- Power companies within the state are collectively burdened with an alarming debt totaling Rs. 81,516 crores.
- Discoms, grappling with financial losses, find themselves in the red with a cumulative deficit of Rs. 62,641 crores, painting a dire financial picture.
- Telangana Gen Co’s Escalating Debts:
- Telangana Gen Co, which had a debt of Rs. 7,662 crores in 2014, has seen its financial liabilities skyrocket, now standing at a staggering Rs. 32,797 crores.
- The inclusion of debts incurred in the name of others pushes the overall indebtedness beyond Rs. 53,000 crores.
- Agricultural Electricity Consumption Challenges:
- The number of agricultural pump sets in the state has witnessed a significant surge from 19.03 lakhs to 27.99 lakhs in the past decade.
- Agriculture now constitutes 28 percent of the total electricity consumption in the state, with lift irrigation accounting for 6 percent, experiencing a 4 percent increase from the previous year.
- Insights into Chhattisgarh Electricity Agreement:
- Details of the Chhattisgarh electricity purchase agreement reveal substantial expenditures, with the state government spending Rs. 39,722 crores for the procurement of 78,970 million units.
- Notably, Rs. 638.50 crores were disbursed as debt for an unutilized corridor related to the Chhattisgarh electricity contract.
- Dharmal Plant Delay and Cost Escalation:
- The Bhadradri Thermal Plant, completed seven years behind schedule, witnessed a significant cost escalation, with the per-megawatt cost rising from Rs. 6.75 crores to Rs. 9.74 crores.
- The Yadadri Thermal Plant, with a 4,000 MW capacity, remains non-operational a decade after its initiation.
- Agricultural Sector Burden:
- Despite claims of providing 24-hour electricity to the agricultural sector, a substantial discrepancy between expected and actual supply has led to a staggering burden of Rs. 18,725 crores on the agricultural sector alone.
- Government Institutions’ Outstanding Dues:
- To settle dues owed to power generators, the state resorted to daily operating capital loans, accumulating to Rs. 30,406 crores.
- Government departments now find themselves in arrears, with an outstanding debt of Rs. 28,842 crores. Major contributors to this debt include Irrigation, Mission Bhagiratha, Panchayati Raj, Water Board, and municipalities.
The release of the white paper is aimed at fostering transparency and acknowledging the pressing challenges faced by the power sector, calling for urgent attention and remedial actions.
