Telangana plans one-time settlement scheme for industrial power dues
Telangana plans a one-time settlement scheme to help closed industries clear outstanding electricity dues. Deputy Chief Minister Bhatti Vikramarka has also directed officials to strengthen thermal generation, secure coal supplies and prepare for rising power demand during summer.
Updated On - 22 October 2026, 10:28 PM
Hyderabad: The Congress government in Telangana will soon roll out a One-Time Settlement (OTS) scheme to help closed industries clear their pending electricity dues, enabling power distribution companies to recover long-pending arrears amid growing fiscal challenges. Deputy Chief Minister Bhatti Vikramarka directed officials to prepare proposals for the scheme.
During a review meeting at the Secretariat on Thursday, Bhatti Vikramarka asked the chairpersons and managing directors of TGSPDCL and TGNPDCL to coordinate with the managements of closed industries and explain the applicable rules and settlement options. He also directed the Finance department to initiate steps to recover outstanding dues owed to Singareni Collieries Company Limited, GENCO, TRANSCO and other power sector organisations by various government departments.
The meeting also focused on preparations to prevent power shortages during the Rabi season and summer, amid the possibility of reduced hydel generation due to El Niño and rising electricity demand. Bhatti Vikramarka set a target of increasing daily thermal power generation to 140 million units.
Officials said average daily thermal generation reached 90.97 million units in the current financial year as of October 21, against 76.46 million units in 2025-26. Generation touched 118 million units on October 16.
To strengthen coal supplies to two units at the Yadadri Thermal Power Plant, an alternative arrangement with Coal India Limited has been made, with supplies expected to begin in November. Four 800-MW units at Yadadri are already generating power. The fifth unit was synchronised with the grid on October 20, and efforts are under way to resolve the remaining technical and operational issues before commercial operation.
The Deputy Chief Minister directed officials to run all thermal units at maximum capacity, improve plant load factors and monitor generation continuously. He stressed coordination among departments to ensure an uninterrupted supply of quality power to consumers.