Chief ministers from the sister states will meet in hyderabad on saturday to discuss several outstanding problems, including Telangana's electricity dues to Andhra Pradesh. Under clause C.2, Schedule XII, of the ap Reorganisation Act, 2014, the ap government has maintained that APGenco provided power to telangana Discoms following the bifurcation, from june 2, 2014, to june 10, 2017.
 
On august 29, 2022, the Union Power Ministry issued an order compelling the TG administration to fulfill its electricity obligations to ap by Section 92 of the ap Reorganisation Act, 2014. This came after ap wrote the Centre multiple representations that TG was not paying its power bills. The power ministry declared in its ruling that, until July 31, 2022, there was no disagreement about the amount that was to be paid about the power dues, which included the principal sum of Rs 3,441.78 crore and the late payment surcharge of Rs 3,315.14 crore.

It amounts to around Rs 43 crore each month when you add a 15% simple interest charge to the principle amount annually. The total amount of the surcharge for the last two years, from July 2022 to July 2024, is Rs 1,032 crore. As a result, Telangana's outstanding debt to ap will reach around Rs 7,788.92 crore by July 2024. According to ap, to produce electricity and deliver it to TG DISCOMs, it obtained loans from the Power Finance Corporation and the Rural Electrification Corporation. As a result, it is required to pay the financiers a compound interest rate of 11.5% every month.
 
According to APGenco officials, the TG Discoms were meant to pay for the electricity that was given to them every month, but they chose not to do so, which led to the accumulation of a sizable sum in arrears. They add that having to pay the main amount and accrued interest to the financiers for the loans they have borrowed is putting a financial strain on them as a result of TG's failure to pay their debts on time. In addition, the TG administration stated that it bought electricity from other sources between 2014 and 2017 when AP's supply was insufficient, and it requested ap to reimburse TG for this expenditure, which came to `1,700 crore.

In the meantime, the ap administration also filed answers, and the telangana government petitioned the High Court, claiming that the Union electricity Ministry lacked the jurisdiction to order it to pay electricity dues to AP. Nonetheless, the telangana government received an order from the High Court. The ap administration finally petitioned the supreme Court, arguing that telangana was required to pay electricity dues to it under the terms of the ap Split Act. The hearing is set for July 30.
 
"We are expecting an amicable solution on the power dues issue, as the ap and TG governments have a good relationship," stated a senior ap Genco official. According to sources, a committee will probably be formed to examine all of the disputes between the two nations and offer suggestions for quick solutions.
 
 

 
 
 
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SIBY JEYYA

06/07/2024 08:51 AM