Centre’s green energy cess causing Rs 7,200 crore additional burden on Telangana

Hyderabad: The Centre’s decision to hike the green energy cess from Rs 50 to Rs 400 per tonnes of coal used for power generation, caused an additional burden of Rs 7,200 crore on the State exchequer over the last seven years. The Centre’s unilateral decision in the name of reforms in electrical sector is causing […]

Hyderabad: The Centre’s decision to hike the green energy cess from Rs 50 to Rs 400 per tonnes of coal used for power generation, caused an additional burden of Rs 7,200 crore on the State exchequer over the last seven years.

The Centre’s unilateral decision in the name of reforms in electrical sector is causing problems to Telangana, which is supplying quality power to consumers since the formation of the State.

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Telangana was the only State, which was supplying uninterrupted and quality power to the agriculture sector, said Finance Minister T Harish Rao and Energy Minister G Jagadish Reddy during the second day of review meeting on the activities of the Energy department on Tuesday.

Both the Ministers discussed various issues pertaining to power utilities, generation, supply and the problems being faced distribution companies (discoms).

Stating that they were according top priority for the welfare and development of all sectors in the State, the Ministers said the State government was supplying power to consumers without increasing the tariff for the last five years. But the decisions taken by the Central government was creating hurdles for the State government in providing better services to consumers and continuing welfare activities.

The scrapping of power purchase agreements (PPAs) during bifurcation of State and rejecting Telangana’s demand for a share in Krishnapatnam and Sileru projects has caused additional burden to discoms.
To fill the deficit, the discoms faced Rs 2,763 crore additional burden for purchasing power in the open market.

Since AP Genco power utilities stopped the supply, the power utilities in Telangana were forced to bear an addition burden of Rs 2,502 crore. These discoms were purchasing 50,000 units of power from thermal power plants every year.

When the BJP-led NDA government increased coal prices from six per cent to 10 per cent coupled with transport charges, an additional burden of Rs 725 crore was imposed on discoms every year. The mandatory renewable power purchase obligation policy has also impacted the Plant Load Factor (PLF) of power plants in Telangana.

When Telangana was carved out, there were as many as 19.03 lakh agricultural pump sets and in the last seven years, the State government has sanctioned an additional 6.89 lakh agriculture connections and spending Rs 3,375 crore.

For the prestigious lift irrigation schemes which were launched in the State, the government was spending Rs 3,200 crore annually apart from providing 250 units of quality free supply to dobhi ghats and laundry shops. Power was supplied to spinning mills, powerlooms and poultry farms at subsidised rates.

Also read:

Telangana: Ministers discuss discoms’ issues

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