Telangana and Andhra Pradesh spar over power dues

Telangana and Andhra Pradesh spar over power dues
x
Highlights

The Telangana and Andhra Pradesh state governments seem to be heading for a showdown on the issue of power dues. While the AP GENCO has stated that it would stop power supply from the end of June if the TS TRANSCO does not clear the power dues, the TS GENCO retorted saying that it too would be constrained to stop power supply to APDISCOMs from TSGENCO stations due to the failure on part of AP Powe

Hyderabad: The Telangana and Andhra Pradesh state governments seem to be heading for a showdown on the issue of power dues. While the AP GENCO has stated that it would stop power supply from the end of June if the TS TRANSCO does not clear the power dues, the TS GENCO retorted saying that it too would be constrained to stop power supply to APDISCOMs from TSGENCO stations due to the failure on part of AP Power Utilities to pay the rightful dues of TS Power utilities,

Firing a counter letter to AP Power Utilities, Chairman and Managing Director of the TS TRANSCO D Prabhakar Rao said that TS Power Utilities were also facing severe financial constraints as AP Power Utilities have not cleared Rs 1676.46 crore.
He said, "It is regrettable to inform that on several occasions, the TS Power Utilities have requested Chairman of APPCC (AP Power Coordination Committee) to settle the issues amicably by adjusting the APGENCO power bills against the dues payable by them to TS Power Utilities and release the net amount after adjustment to TS Power Utilities.

However, the requests of TS Power Utilities were unheeded by Chairman/APPCC, and APPCC chose to isolate the claims of TSDISCOMs and insisting on payments of only APGENCO." The Chairman and Managing Director said it was painful to note that AP Power Utilities have not responded to the requests of TS Power Utilities to adjust the dues payable to TSDISCOMs and the dues payable to TS TRANSCO on account of interest on bonds and amounts receivable by TS GENCO for excess liability physically discharged by TS GENCO towards common loans and TS power utilities investment in APPDCL.

The State was bifurcated three years back and AP GENCO is insisting for only settlement of their dues. Telangana Power Purchasing Committee and TS DISCOMS opined that the settlement of dues between the two power utilities should be done at the State level for a permanent and amicable solution to this vexed issue.

Hence the letter said, “It is once again requested to consider the dues of Power Utilities at state level and release Rs. 1676.46 crore to TS Power Utilities." Prabhakar Rao said that the TS Power Utilities were also facing severe financial constraints. The TS Power Utilities are forced to discharge certain obligations of the common state like the loans and liabilities of Anantapur and Kurnool, which are affecting the financial resources of DISCOMS.

Furthermore, TSGENCO is meeting the obligations of APGENCO more than its share of loans. This is affecting cash flows of TS Power Utilities. "Under such circumstances, Telangana Power Utilities are also constrained to regulate power supply to APDISCOMs from TSGENCO Stations due to the failure on part of AP Power utilities to pay the rightful dues of TS Power
utilities," he said.

Show Full Article
Print Article
Interested in blogging for thehansindia.com? We will be happy to have you on board as a blogger.
Next Story
More Stories