Power ban on Telangana and Tamil Nadu lifted after repayment of dues

This comes after curbs on Andhra Pradesh were lifted a day earlier by the Centre after reconciliation of dues.

ByAjay Tomar

Published Aug 20, 2022 | 6:18 PMUpdatedMar 16, 2023 | 4:21 PM

Telangana and Tamil Nadu have overcome the restriction imposed on them on the purchase of power from power exchanges (Creative Commons)

The Telangana and Tamil Nadu governments have overcome the ban imposed on them on the purchase of power. The National Load Dispatch Centre, under the Power System Operation Corporation (POSOCO) of the Union Ministry of Power, has allowed the states to trade on power exchanges.

The restriction was lifted after a report of the reconciliation of the dues paid by the state to power generators was communicated to the Union Ministry of Power’s portal PRAAPTI (Payment Ratification and Analysis in Power Procurement for Bringing Transparency in Invoicing of Generators).

From midnight of 19/20 August, Telangana and Tamil Nadu discoms resumed trading activity on the power exchanges.

This comes after curbs on Andhra Pradesh were lifted on 19 August after reconciliation of dues.

The restriction on power trading was imposed after exchanges with PRAAPTI showed dues to generators as unpaid even though the state governments alleged that some amount was paid previously but was not updated on the portal.

While Telangana was removed from the portal on 20 August, Tamil Nadu is still present on it with ₹73.53 crore listed as dues to the generators.

The Union Ministry of Power on 18 August issued a direction to the power exchanges to stop selling power to distribution companies (discoms) in 12 states and a Union territory, including Telangana, Tamil Nadu, Andhra Pradesh, and Karnataka. It asked states to clear their dues to generators or face restriction on purchase of power on the exchanges.

According to POSOCO, the defaulting discoms cumulatively owed ₹5,000 crore to gencos, with Telangana having the highest dues with around ₹1,380 crore.

Telangana clears power dues

Speaking to South First, Transmission Corporation of Telangana Limited (TS TRANSCO) Chairman D Prabhakar Rao  said, “The total due of ₹1,380 crore has been paid, including the ₹52.85 crore Late Payment Surcharge (LPS), well within the time period. Reconciliation was required on some amount but now everything is under control.”

On being asked whether the state would continue to purchase 20 million units from the exchanges, Rao said that “it depends upon everyday requirement.”

Jagath Reddy, Director Projects at TS TRANSCO, told South First, “The National Load Dispatch Centre (NLDC) has allowed the state to trade power on power exchanges today midnight and we have resumed the purchase.”

He added that the power supply to people will not be affected at any point of time.

Taking a swipe at the Union government, Telangana Energy minister G Jagadish Reddy accused it of misusing its power and calculating the payment amount incorrectly.

Tamil Nadu discoms too pay the dues

An official from the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) said that out of the around ₹925 crore due, ₹854 crore was already paid.

“Today we have paid ₹67 crore, which clears all the outstanding dues. NLDC has also acknowledged it. Some amount needed reconciliation. That was also done,” he told South First, adding that the state doesn’t need to buy power from exchanges.

Tamil Nadu Energy Minister V Senthil Balaji, in a series of tweets, claimed that the monthly arrears of ₹361 crore were paid a fortnight back, on 4 August.