Telangana govt approves third DISCOM to restructure electricity distribution

The Congress government in Telangana has approved the creation of a third electricity distribution company (DISCOM) to address financial and operational challenges faced by the existing utilities. Currently, power distribution is managed by TGSPDCL and TGNPDCL, covering 33 districts.

Hyderabad: The Congress government has formally approved the formation of a third electricity distribution company (DISCOM) in the State. Orders to this effect were issued by the Energy Department on Wednesday.

At present, power distribution in Telangana is handled by two utilities, namely the Telangana State Southern Power Distribution Company Ltd (TGSPDCL) and the Telangana State Northern Power Distribution Company Ltd (TGNPDCL), covering 15 and 18 districts respectively.

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In its orders, the Congress government said the decision to set up a third DISCOM was aimed at exclusively handling electricity retailing for specific consumer categories supported by the government. The government had not only promised to improve operational efficiency, and facilitate infrastructure development, but also implement Central and State-backed power sector reforms.

The Congress government attributed the poor financial health of the DISCOMs to free and subsidised power supply to agriculture and other sections, which it claimed had prevented them from ensuring reliable and quality power supply across the State.

According to the government order, the stressed finances of the existing DISCOMs have constrained their ability to raise funds, undertake system upgrades, and effectively participate in infrastructure programmes such as the Revamped Distribution Sector Scheme (RDSS).

The Chairmen and Managing Directors of TGSPDCL and TGNPDCL have been directed to initiate further action in line with the decision.