Major Reforms In Energy Sector: TG to launch new Discom
CM asks officials to redraw plans to cut debt burden on power cos
Hyderabad: Chief Minister A Revanth Reddy on Wednesday directed officials to take up major reforms in the energy sector to improve its efficiency in the power supply and reduce mounting financial burden due to higher interest rates on loans borrowed by the power utilities in the state.
As part of the reforms, the state government will create a new Discom in addition to the existing Telangana State Southern Power Distribution Company Limited (TGSPDCL) and Telangana State Northern Power Distribution Company Limited (TGNPDCL).
Reviewing the performance of the Energy Department here, the Chief Minister asked the officials to bring the entire state as a single unit under the new Discom. Free power supply to the agriculture sector and educational institutions and 200 units of free power to the poorer sections will also be implemented with the new Discom.
Reddy said that the initiative to set up a third Discom is part of plans to improve financial conditions of all power utilities. "The performance of the existing Discoms will improve and the rating at the national level will also increase if the government strengthens the utilities through several reforms in the energy sector, " he said.
Along with the reorganization of Discoms, the Chief Minister instructed the officials to reduce the current debt burden on power companies. The Energy Department officials have been asked to prepare an action plan to reduce the interest burden on loans. When the officials brought to his notice the issue of higher interest of 10 per cent on loans, the Chief Minister asked them to restructure the loans with lower interest rates.
The Chief Minister also instructed the officials to make solar power available in government schools and colleges as well as government offices across the state. Solar plants will be installed in all government offices. District Collectors will be assigned the responsibility of identifying suitable buildings for the installation of solar power plants. The officials were asked to prepare necessary plans for this on a war footing.
