Hyderabad: Amid a looming financial crisis, Deputy Chief Minister and Energy Minister Mallu Bhatti Vikramarka underscored the critical role played by the power sector in the economic progress and development of the state.
Emphasizing that a reliable power supply is the linchpin for industrial development, agricultural progress, and the growth of the service sector, Bhatti highlighted the sector’s significance in emergency medical services, transportation, and communication.
Speaking after releasing the White Paper on the Energy Department during a short discussion in the Telangana Legislative Assembly on Thursday, Bhatti explained the alarming financial predicament facing the state, especially the energy department.
Providing insights into the state’s power generation capacity, Minister Bhatti Vikramarka revealed that at the time of Telangana state’s formation, TSGENCO’s installed power generation capacity was 4365.26 MW. He disclosed that the previous Congress government had initiated plans and works for 2960 MW power generation centres, which later played a significant role in providing quality electricity to Telangana.
He disclosed that the Discoms had suffered a total loss of Rs. 62,461 crores, with the current debt reaching Rs. 81,516 crores as of October 31. A substantial portion of this debt, amounting to Rs. 30,406 crores, constitutes day-to-day working capital loans to settle dues with electricity generators. Additionally, outstanding dues of Rs. 28,673 crores are yet to be paid to power generation and supply companies.
Highlighting the primary challenge faced by Discoms in power procurement, Bhatti Vikramarka pointed to the Rs. 28,842 crores in dues unpaid by various state departments for several years. The irrigation department alone owes Rs. 14,193 crores. Moreover, the burden of Rs. 14,928 crores, not promised by the previous government to Discoms under the actual adjustment costs of power purchase, further weakened the financial position of the Discoms.
As a consequence, Discoms are forced to accumulate substantial debt for day-to-day survival, making it challenging to secure necessary funds for power purchases. Bhatti Vikramarka attributed this predicament to the previous government’s failure to make timely payments and uphold commitments to companies, resulting in the current debt crisis.”Despite inheriting a financially crippled power sector, the present government remains dedicated to delivering quality, reliable power to all consumers in the state, including free power to the agricultural sector,” Bhatti said while acknowledging the financial challenges and assuring a responsible and transparent approach. (INN)