Telugu states wrangle over power dues

V Rishi Kumar Hyderabad | Updated on January 12, 2018 Published on June 09, 2017

AP Genco stakes ₹3,500-cr claim over Telangana

The Telugu states of Andhra Pradesh and Telangana are engaged in a row over payment of dues for power with both seeking their rightful dues, and threats to cut of power supply.

The recent directive of AP Genco to load despatch centre not to supply power to TS Transco till their dues are paid has sparked off a fresh row. The issue takes an unpleasant turn even as Telangana is celebrating its three years of formation on June 2.

Disconnection sought

The current inter-state dispute was triggered when AP Genco in a communication to Southern Regional Power Committee sought its support in recovery of its dues from TS Genco worth about ₹3,500 crore. It sought disconnection of about 400 MW of power supply and there was also no supply of coal from Singareni Collieries for one of the power projects due to arrears.

AP Genco mentioned it was unable to pay the coal bill of about ₹1,400 crore as it had pending dues for recovery from its counterpart in Telangana.

Amicable settlement

Responding to the developments and AP Genco power regulation notice, the TS Transco Chairman and Managing Director D Prabhakar Rao has sought a permanent and amicable settlement of dues between the two states at the state level and sought release of ₹1,676 crore after netting AP Genco dues against the amounts receivable by TS Power utilities.

He said, “Once the payments are made, supply of power to AP Discoms from TS Genco will be restored.” Rao mentioned this may be treated as a regulation notice of TS Genco to AP Discoms.

“The notice was issued to TS Transco without payment of ₹1,676 crore to Telangana and this was against the provision of the XII Schedule of the AP Reorganisation Act 2014,” he added.

Pre-bifurcation issue

TS Transco has said TS power utilities are facing severe financial strain as its AP counterparts are not settling pending dues. TS contention is that it is forced to discharge obligations which accrued to it before bifurcation which includes inter- corporate deposits, dues paid on account of bonds and other funds.

The power situation in both the states has transformed remarkably over the past three years providing a great relief to consumers while minimising friction points. TS and AP still have a number of issues that need to be addressed, including sharing of river water.

Published on June 09, 2017
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