Power dues threaten to derail village development in Telangana
Telangana's gram panchayats are facing a financial crisis as around Rs 1,700 crore in electricity dues threaten to consume 15th Finance Commission grants. Sarpanches have opposed the proposed diversion of development funds, warning it would severely affect village infrastructure and civic works
Hyderabad: Telangana’s gram panchayats are staring at a fresh financial crisis as mounting electricity dues threaten to consume funds released by the Centre for village development under the 15th Finance Commission. Officials pegged the pending power bills at around Rs 1,700 crore.
The grants are intended for drinking water supply, sanitation, internal roads, drainage, parks, streetlights and other civic infrastructure. However, the State government is learnt to be exploring the use of 15th Finance Commission grants to clear the dues, triggering strong opposition from newly elected sarpanches. They argued that diverting Central grants meant for infrastructure and civic amenities would leave villages without resources for basic development works.
The arrears stem largely from electricity consumed for street lighting, drinking water supply, Palle Prakruthi Vanams, nurseries, sports grounds and other public facilities across the State’s 12,760 gram panchayats. Depending on their size, villages incur monthly electricity bills ranging from Rs 15,000 to Rs 30,000.
Officials said electricity bills were paid regularly during the previous BRS government. However, arrears accumulated after the Congress assumed office due to delays in sarpanch elections, a shortage of funds and the subsequent delay in the release of the Finance Commission grants.
With DISCOMs pressing for immediate payment, the Panchayat Raj Department has reportedly instructed village secretaries to utilise available 15th Finance Commission funds through the digital key system to clear the dues. They were also warned of departmental action if payments were delayed further.
The move has put village secretaries in a difficult position, caught between pressure from power utilities, instructions from the department and resistance from elected representatives. In several districts, sarpanches are reportedly preventing secretaries from withdrawing the funds.
Panchayat Raj officials have defended the proposal, maintaining that the Finance Commission grants can be used for essential services such as drinking water supply and street lighting, and that electricity expenditure falls within the permissible ambit. They stated that clearing electricity bill arrears was urgent considering the increased use of power for drinking water supply amid the ongoing water crisis caused by poor rainfall and the impact of El Nino.
With old arrears mounting, fresh bills accumulating and development funds caught in the middle, gram panchayats are facing an escalating financial squeeze. Unless the government evolves a long-term solution, village infrastructure and development works risk coming to a standstill.
