Telangana power sector burdened by Rs.30,000 cr debt

Union Minister G. Kishan Reddy on Thursday said Telangana’s power sector is facing a severe financial crisis, warning that power generation and distribution companies in the state are burdened with massive debts and mounting losses.

Addressing media persons, Reddy said a white paper released by the Telangana government itself revealed power sector liabilities exceeding Rs.30,000 crore. He added that the state also owes about Rs.47,000 crore to Singareni Collieries Company, pushing the sector towards a near-collapse situation. "The demand for electricity is rising every day, but the financial condition of power utilities is deteriorating. Even minor rain or wind disrupts power supply in Hyderabad and other areas,” he said, blaming the state government for failing to clear old dues due to lack of funds.

Further, the minister said the Centre is ready to cooperate with Telangana in all aspects of power generation and has already extended support by strengthening the power cable system with new technology and ensuring connectivity through the One Nation–One Grid framework. 

He disclosed that the Union government has decided to generate 4,000 MW of power under NTPC. Stressing that electricity is a basic necessity and crucial for Telangana to emerge as a global hub, Reddy said the state should focus on increasing power generation rather than creating new distribution companies. “Industries will not invest where reliable electricity is unavailable,” he cautioned. He further said that 74 per cent of electricity generation still depends on thermal power and recalled the era of frequent power cuts in Andhra Pradesh and Telangana before the Modi government came to power.