AP, Telangana discoms lock horns over dues

Image
Press Trust of India Hyderabad
Last Updated : Jun 12 2017 | 8:13 PM IST
Power transmission has been suspended between Andhra Pradesh and Telangana following claims of non-payment of dues to each other by the discoms of the two states.
Telangana GENCO had earlier issued a notice to Andhra Pradesh demanding the pending power dues of Rs 1,646.76 crore, while its counterpart had warned stopping of power supply if the new state failed to clear its energy bill of Rs 3,183 crore.
"There is no power supply between both the states as of now. AP has to move first to settle the issue as they are the first to issue notice to us. As such we are not very eager to buy power from them as it is costlier," TS TRANSCO chairman and managing director D Prabhakar Rao told PTI.
However, there is no material impact of inter-state suspension of power supply on consumers in Andhra Pradesh as it is a power surplus state.
Telangana is short of around 400 mw to meet its demand for which it has already tied up supply from Chhattisgarh.
On June 6, AP Genco wrote to the Telangana discom threatening that it would stop power supply until it clears dues of Rs 3,183 crore.
In a reply to that letter, Transmission Corporation of Telangana (TS TRANSCO) issued a notice to the AP power utility threatening to "regulate" power supply to the latter if pending dues of Rs 1,646.76 crore are not settled.
When contacted, AP Genco managing director K Vijayanand said they tried to reach out the Telangana discom even after issuing notice for dues, but there is no response.
"They (Telangana power utilities) are saying that we owe them Rs 1,600 crore (Rs 1,676.46 crore). But that pertains to assets and liabilities of discoms. They cannot link power dues with assets and liabilities. We are ready to deduct that also from their dues. Let them pay the rest," Vijayanand told PTI.
As per the Andhra Pradesh Reorganisation Act, the combined power generated in both the states is shared in about 43:57 ratio between Telangana and Andhra Pradesh.
On that basis AP gets about 800 mw from Telangana while it parts 1,200 mw with the new state, resulting in net excess of 400 mw of power supply to Telangana.
Prabhakar Rao said Telangana are fully geared up to tackle the situation.
He said as such the demand has come down and is hopeful of generation of hydel power once monsoon starts in full swing.
He also said the state has already tied up with the Chhattisgarh government for supply of 1,000 mw of electricity.

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Jun 12 2017 | 8:13 PM IST

Next Story