Relief to Telangana: HC stays Centre’s order on power dues to AP

HYDERABAD: The Telangana High Court on Wednesday termed the Centre’s order asking the Telangana power utilities to pay Andhra Pradesh for electricity supplied in the past as prima facie illegal as it had not heard TS power utilities before issuing the said order. The court also directed the Centre not to take any coercive action against Telangana power utilities.

A bench comprising Justice P Naveen Rao and Justice J Sreenivas Rao heard a writ petitioned filed by Special Chief Secretary to Telangana government Sunil Sharma, expressing dissatisfaction over the action of the Secretary,  Ministry of Energy, in issuing the order dated August 29, 2022, under Section 92 of the AP Reorganisation Act, 2014. In its order the Centre directed Telangana to pay Rs 3441.78 crore dues towards the principal amount and Rs 3315.14 crore towards the late payment surcharge to the AP government within 30 days.

Dushyant Dave, senior counsel representing Telangana power utilities, informed the court that the concerns emerging from the AP Reorganisation Act should have been debated before the apex body, the Southern Regional Council, which was not done.

AP benefited from Centre’s decree: TS

The AP government has benefited from the Central government’s contested decree since the AP government assisted the Centre in electing the president and vice-president. “Why did the Central government take such a decision when challenges, resulting from the Reorganisation Act in other States are still pending? The senior lawyer submitted before the court that AP and TS are two children born of bifurcation, and the Central government should not have demonstrated such a biased attitude towards the Telangana government,” senior counsel Dushyant Dave added.

CV Mohan Reddy, senior counsel appearing for the AP Power Discoms, expressed regret over the non-payment of Rs 7,000 crore as the nonpayment has pushed the AP Power Discoms into into dire straits because these Discoms also took huge loans from financial institutions for power generation and strengthening of infrastructure. Because the power was generated and provided to the TS Power utility after the bifurcation, none of the clauses of the AP Reorganisation Act applied to this situation.

Surya Karan Reddy, Additional Solicitor General for the Central government, briefed the court that the AP Power Discoms supplied power to Telangana due to the Centre’s intervention. As a result, the Central government has the authority to issue such an order.

After hearing all the arguments, the bench issued notices to the Central government, Secretary to the Power Ministry, the Chief Secretary of Andhra Pradesh, the National Load Dispatch Centre, the Power System Operation Corporation Limited, the AP Power Generation Corporation Limited, and the Telangana State Electricity Regulatory Commission, and adjourned the case to October 18, 2022.

HYDERABAD: The Telangana High Court on Wednesday termed the Centre’s order asking the Telangana power utilities to pay Andhra Pradesh for electricity supplied in the past as prima facie illegal as it had not heard TS power utilities before issuing the said order. The court also directed the Centre not to take any coercive action against Telangana power utilities. A bench comprising Justice P Naveen Rao and Justice J Sreenivas Rao heard a writ petitioned filed by Special Chief Secretary to Telangana government Sunil Sharma, expressing dissatisfaction over the action of the Secretary,  Ministry of Energy, in issuing the order dated August 29, 2022, under Section 92 of the AP Reorganisation Act, 2014. In its order the Centre directed Telangana to pay Rs 3441.78 crore dues towards the principal amount and Rs 3315.14 crore towards the late payment surcharge to the AP government within 30 days. Dushyant Dave, senior counsel representing Telangana power utilities, informed the court that the concerns emerging from the AP Reorganisation Act should have been debated before the apex body, the Southern Regional Council, which was not done. AP benefited from Centre’s decree: TS The AP government has benefited from the Central government’s contested decree since the AP government assisted the Centre in electing the president and vice-president. “Why did the Central government take such a decision when challenges, resulting from the Reorganisation Act in other States are still pending? The senior lawyer submitted before the court that AP and TS are two children born of bifurcation, and the Central government should not have demonstrated such a biased attitude towards the Telangana government,” senior counsel Dushyant Dave added. CV Mohan Reddy, senior counsel appearing for the AP Power Discoms, expressed regret over the non-payment of Rs 7,000 crore as the nonpayment has pushed the AP Power Discoms into into dire straits because these Discoms also took huge loans from financial institutions for power generation and strengthening of infrastructure. Because the power was generated and provided to the TS Power utility after the bifurcation, none of the clauses of the AP Reorganisation Act applied to this situation. Surya Karan Reddy, Additional Solicitor General for the Central government, briefed the court that the AP Power Discoms supplied power to Telangana due to the Centre’s intervention. As a result, the Central government has the authority to issue such an order. After hearing all the arguments, the bench issued notices to the Central government, Secretary to the Power Ministry, the Chief Secretary of Andhra Pradesh, the National Load Dispatch Centre, the Power System Operation Corporation Limited, the AP Power Generation Corporation Limited, and the Telangana State Electricity Regulatory Commission, and adjourned the case to October 18, 2022.