Telangana, Andhra Pradesh spar over power dues

A tug of war appears to be brewing between Telangana and Andhra Pradesh over payment of pending power dues, after Central government on Monday ordered Telangana to pay dues to Andhra Pradesh in 30 days for supplying power from June 2, 2014 to June 10, 2017.

Hyderabad: A tug of war appears to be brewing between Telangana and Andhra Pradesh over payment of pending power dues, after Central government on Monday ordered Telangana to pay dues to Andhra Pradesh in 30 days for supplying power from June 2, 2014 to June 10, 2017.

Responding to Centre’s order, TS Transco officials said that in fact the net receivable by Telangana power utilities from AP power utilities was to the tune of Rs.12,940 crore. They argued that the Centre issued the order without considering the dues receivable by Telangana power utilities from Andhra Pradesh.

---

They maintained that the total receivable from Andhra Pradesh power utilities were actually Rs.17,828 crore but after deducting dues of Rs.4,887 crore payable to APGenco by Telangana State Power Coordination Committee (TSPCC), the net receivable by Telangana power utilities from Andhra Pradesh was Rs.12,940 crore up to December 31, 2021.

Sources explained that the APDiscoms payments to Telangana include Rs.2,975 crore pertaining to debt servicing of Anantapur and Kurnool districts, Rs.522 crore related to Anantapur and Kurnool share of intercompany deposits (ICDs) taken by Andhra Pradesh Central Power Distribution Company Limited (APCPDCL) to meet power purchase cost and Rs.322 crore towards inter-State sales, reactive charges, receivable of GVK revised deviation energy charges in June and September 2015 along with TSPCC share remitted to AP Power Coordination Committee (APPCC).

The APDiscoms also owe Telangana Rs.4,746 crore and Rs.1,411 crore towards cost incurred by TSDiscoms for market purchases due to stoppage of thermal power and hydel power, respectively and another tranche of Rs 482 crore up to June 2017 towards loss due to non-supply of power from Machkund and Tungabhadra dam from June 2017.

Further, APTransco has to pay Telangana, Rs.712 crore as investment in employees trust at the rate of 7.5 per cent, Rs.190 crore as transmission and State Load Dispatch Centre charges, Rs 612 crore as Discoms bonds along with other charges of Rs.215 crore.

An amount of Rs.972 crore was also due from APGenco to Telangana towards excess liability physically discharged by TSGenco towards common loans along with Rs.882 crore towards TSGenco’s share of discoms bonds retained by APGenco and Rs.2,172 crore towards TSGenco trusts share of investment receivable from APGenco trusts.

Earlier, the centre sought to exercise its powers vested in it under section 92 of the AP Reorganisation ACt – 2014 and asked Telangana to pay dues to Andhra Pradesh.

The Power System Operation Corporation (POSOCO) in its letter dated June 18, 2014, conveyed that the Andhra Pradesh State Load Dispatch Centre (APSLDC) must continue supply of power to Telangana as per APRA.

Accordingly, the APGenco had supplied power to Telangana Discoms, post bifurcation from June 2, 2014 to June 10, 2017, under clause C.2 of Schedule XII of APRA. Singh said representations have been received from Andhra Pradesh that Telangana had not paid for the power supplied from June 2, 2014 to June 10, 2017.

He said there was no dispute regarding the amount to be paid for the power dues – the principal amount being Rs 3441.78 crore, and late payment surcharge being Rs. 3315.14 crore up to July 2022 to be paid in addition to the principal amount as per the applicable provisions.

“Every right of one party entails a corresponding duty, right and duty are co-joined and as such Telangana must pay the power dues to AP for electricity supplied to them under the orders of the Central government issued as per APRA,” Singh said.

Jagadish Reddy blasts Centre

Energy Minister G Jagadish Reddy on Monday lashed out at the Central government for issuing an order to Telangana to pay pending power dues to Andhra Pradesh.

Terming the Centre’s decision as unilateral, the Minister said the Central government bore a grudge against Telangana and was resorting to unjustified acts on all fronts. Before issuing an order, the Centre failed to consider the dues to be paid by AP to Telangana.