Telangana\, AP get wires crossed on power dues

Economy

Telangana, AP get wires crossed on power dues

V Rishi Kumar Hyderabad | Updated on March 08, 2019 Published on March 08, 2019

D Prabhakar Rao, Chairman and Managing Director, TS Transco and TS Genco KVS Giri   -  KVS Giri

Trade charges and counter-charges

Telangana and Andhra Pradesh are headed for another tussle, this time over electricity payments. Even as the recent flare-up over data theft charges is yet to die down, a fresh row has erupted over power dues dating back to the time of the bifurcation of Andhra Pradesh.

While AP Genco has filed two petitions with the National Company Law Tribunal (NCLT) against the Telangana Southern Power Distribution Company Ltd and the Telangana Northern Power Distribution Company Ltd, seeking ₹5,732 crore in arrears, Telangana contends that the NCLT is not the right forum to settle the matter and it was for the Electricity Regulatory Commission to take a call.

Telangana claim

D Prabhakar Rao, Chairman and Managing Director of TS Transco and TS Genco, said, “It is all about wrong accounting and the AP Genco officials are not being guided properly. We are willing to settle the issue within 24 hours and have written several letters to AP.” Providing an update on the payment-related issues, Prabhakar Rao said, “We have net receivables of ₹5,785 crore from AP power utilities and TS discoms have to pay ₹3,379 crore towards power purchases. This leaves us with ₹2,406 crore due from the AP power utilities.”

“We are willing to settle this and invite them to come around and pay us the balance amount,” he said.

Rao said the dues include ₹1,659 crore receivable from AP discoms to TS discoms; ₹101 crore receivable by TS Transco from AP Transco; ₹3,096 crore receivable by TS Genco from AP Genco; and ₹929 crore receivable from AP power utilities to Telangana power utilities towards investments made in Krishnapatnam power plant, adding up to ₹5,785 crore.

The Transco CMD said issues with regard to handing over of the tail pond dam near Nagarjunasagar dam, which helps meet peak power demand have been raised alongwith over 75 MW power from Machkund and Tungabhadra dams, comprising Telangana’s share from these projects.

‘No jurisdiction’

Rao said, “Telangana will contest the petition moved in the NCLT as it does not have jurisdiction over the matter. These issues are governed by the Electricity Act, 2003 and as utilities are service-oriented and non-profit organisations, they cannot be equated with commercial units.”

On concerns of pending dues expressed by the NTPC and various other IPPs, Rao said all the dues would be paid and a portion of the ₹1,356 crore has already been paid.

AP’s counter-claim

Responding to Telangana’s contention, APGenco in a statement said, “As per their power utilities books of account, they are liable to pay ₹11,728 crore to APGenco. The books of accounts of TSSPDCL clearly exhibit that dues to APGenco is ₹8,274.23 crore. The balance is due from TSNPDCL as per their own books of accounts.”

APGenco has supplied power to TS discoms after bifurcation of the State, for which they owe ₹5,732.40 crore towards sale of power after adjustments. Following meetings between the Chief Secretaries of the two States, TS had agreed to clear the dues in monthly instalments of ₹150 crore along with the current monthly bill. However, this was not fulfilled, it said.

The demerger issues raised by CMD of TS Transco are between the power utilities and are not relevant to the dues payable to AP Genco, it contended.

Published on March 08, 2019
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