The Deputy Chief Minister presented a White Paper on the power sector, which said the Discoms have a debt burden of ₹81,516 crore as of 31 October 2023.
Published Dec 21, 2023 | 2:04 PM ⚊ Updated Dec 21, 2023 | 2:04 PM
The White Paper painted a bleak picture of the power sector. (South First)
A White Paper on the power sector, presented to the Telangana Legislative Assembly, put the accumulated losses of electricity Distribution Companies (Discoms) at ₹62,461 crore as of 31 March 2023.
The White Paper presented by Deputy Chief Minister Mallu Bhatti Vikramarka on Thursday, 21 December, revealed that the Discoms have a debt burden of a whopping ₹81,516 crore as of 31 October 2023.
Of the total debt, ₹30,406 crore was borrowed as working capital to pay power charges to electricity generators. Additionally, the Discoms have to pay ₹28,673 crore as generation and transmission charges.
The Discoms are facing difficulty paying power purchase bills since government departments have defaulted in clearing their dues, now totalling ₹28,842 crore.
The amount due from lift irrigation projects alone is ₹14,193 crore. The government defaulting on payment towards committed true-up charges of ₹14,928 crore has further compounded the problems of the Discoms.
Vikramarka said the situation is grave and the Discoms are forced to borrow regularly to supply power without interruption. The debt has reached unsustainable proportions and there is limited scope to continue funding the purchase of power through loans, the white paper said.
The Deputy Chief Minister said that the Discoms are in a debt trap due to the previous BRS government’s failure to clear its dues and honouring its commitments to the sector.
Vikramarka said that at the time of the formation of the state in 2014, the installed generation capacity of TSGENCO was 4365.26 MW.
The power generation projects were conceived or initiated with a capacity of 2,960 MW during the bifurcation of the state. The projects were commissioned after the formation of Telangana.
Additionally, special provisions in the AP Reorganisation Act, 2014, regarding the power sector enabled the state to get over 1,800 MW of power beyond the installed capacity at that time, he said, highlighting why the power supply situation in the state had not collapsed despite the BRS government’s failure.
He said that the previous government had bungled in setting up power plants. After the formation of the state, 1080 MW consisting of 4×270 MW of Bhadradri Thermal Power Station (BTPS) was planned and completed. The power station was planned with subcritical technology and was envisaged to be completed in two years at a cost of ₹6.75 crore/MW.
The project, however, took seven years, and the cost escalated to ₹9.74 crore/MW.
After the formation of the state, only one power project of 1,080 MW capacity was conceived and commissioned at Bhadradri Thermal Power Stations (BTPS). The inordinate delay, however, resulted in cost overruns as it used subcritical technology.
The TSGENCO has taken up the Yadadri TPS in the Nalgonda district with a zero date on 1 June 2015. The initial capital for this project was ₹25,099 crore (₹6.27 crore/MW) and as per the latest detailed project report, the project cost has become ₹34,543 crore (₹8.64 crore/MW).
The coal for this project was to be procured from the Singareni Collieries Company Limited (SCCL)’s mines in Khammam and Bhadradri districts. This coal has to be transported by rail. It is estimated that the transport cost is likely to be ₹803 crore/annum (₹550/MT). At present, the railway has a single track in the sector, which may present some challenges in operating the power plant.
The deputy chief minister said that despite the legacy of financial imprudence, the present government is committed to providing quality and reliable power to the people by overcoming the
challenges through a responsible and transparent approach.
