Telangana sacrifices central funds for welfare of people, farmers

The Centre has earmarked incentives worth Rs.1,43,332 crore as financial incentives to 12 States for boosting power reforms for the year 2023-24

Hyderabad: Telangana’s insistence on not burdening consumers, especially farmers, through privatisation of the power sector and implementation of the Centre’s power reforms will result in the State losing out on Central funds.

The Centre has earmarked incentives worth Rs.1,43,332 crore as financial incentives to 12 States for boosting power reforms for the year 2023-24. However, Telangana will not receive the incentives as Chief Minister K Chandrashekhar Rao has decided to forgo this, keeping in mind the interest of the people of the State, especially farmers. This is because implementing the power reforms brought by the Centre would pave the way for privatization of Discoms and affect the interests of farmers.

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The Centre, in the name of power reforms, was conspiring to corporatise the power sector in the country, according to sector experts, who point out that the Centre was forcing State governments to install meters to every connection, including those that supply free power to farmers, and to stop cross subsidies, thereby putting additional burden on consumers. It had exerted pressure on State governments by saying that 0.5 per cent additional borrowings would not be permitted to States that do not implement the new power bill.

However, the Chief Minister did not succumb to the pressure tactics of the Centre and decided to continue cross subsidy and free power supply to farmers and weaker section communities. The Chief Minister last year had clearly said that he would not allow the Centre’s power reforms in the State at any cost.

“Even if Telangana has to suffer losses to the tune of Rs.5,000 crore annually on account of not installing the meters, we will not implement the power reforms and we are opposing these reforms. The crores of rupees as incentives given by the Centre are not more important than the welfare of farmers and people,”he said.

There are about 20619263 power connections in the State, out of which 27.20 lakh are agriculture consumers. The government has provided a subsidy of Rs.11,500 crore to the distribution companies during the year 2022-23 to provide free power supply to agricultural consumers and subsidized power to domestic consumers.

Apart from this the State government is providing free power upto 101 units every month benefitting 6,01,749 SC consumers and 3,26,335 ST consumers and free power upto 250 units to 30,552 Nayee Brahmins/Hair cutting saloons and 60,669 Dhobi Ghats/Laundry shops. A subsidy of Rs.2.00/unit to 6,572 poultry farms and Rs.2.00/unit to 4,991 power looms is being provided.