Centre asks Telangana to pay power dues of Rs 6,756 crore to AP

Hyderabad: Union ministry of power on Monday asked Telangana to pay 6,756 crore power dues to Andhra Pradesh (AP) within a month.

On Monday, Deputy secretary, ministry of power Anoop Singh Bisht issued the order.

The order stated that the dues pertained to power supplied by AP Genco of Telangana power distribution companies (Discoms) between June 2, 2014, and June 10, 2017.

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According to the order, Andhra Pradesh Genco had supplied power to Telangana discoms post bifurcation under clause C.2 of schedule XII of the AP reorganization Act 2014.

The AP Reorganization Act 2014 says that for a period of 10 years the successor state that has a deficit of electricity shall have the first right of refusal for the purchase of surplus from the successor state. The Power System Operation Corporation (POSOCO) asked AP to continue power supply to Telangana discoms and the representation was received from AP that Telangana has not paid for the power it supplied between 2014 to 2017.

Furthermore, the order said that there is no dispute regarding the amount to be paid towards power dues. The principal amount of Rs 3,441 crore and late payment and surcharge being Rs 3,315

“Due to which, TS discoms had to procure power at high cost and consequently incurred huge financial burden. If all dues are considered, such as debt servicing of Anantapur and Kurnool districts, and costs incurred due to the purchase of thermal power, Telangana power utilities, in fact, have to get Rs 12,532 crore from AP. There is a court case filed by AP Genco in the high court for payment of power dues,” officials of Telangana discoms said.

Meanwhile, AP requested the Centre for a settlement of Rs 3,442 crore, payable by TSGenco as a stand-alone settlement.

Telangana officials said the Centre should take a holistic approach instead of a piecemeal settlement. The Centre was informed about the sudden stoppage of power supply by AP Genco to TeKrishnapatnam Power Plant. Telangana was deprived of low-cost hydel power from Sileru hydro power project.

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