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The Telangana State Government is in favour of a holistic resolution of disputes relating to power dues with the neighbouring Andhra Pradesh for maintaining good inter-State relations and ensuring fair financial dealings in line with the Andhra Pradesh Reorganisation Act 2014.
Deputy Chief Minister Mallu Bhatti Vikramarka has requested the Central Government to facilitate a comprehensive settlement of all power related disputes, potentially through mediation as suggested by the High Court, rather than focussing solely on isolated issues.
Power consumers in Andhra Pradesh have to wait until next fiscal year for reduction of tariffs
The request assumes significance as the dispute over power dues between the two Telugu States had been pending for more than a decade as the two States remain firm on their respective stances.
While Andhra Pradesh has been insisting that Telangana power utilities were due to the tune of ₹6,756 crore to its power utilities, Telangana on its part is firm that the neighbouring State is in fact due to the tune of ₹24,132 crore.
The Telangana Government explained that unilateral cancellation of power purchase agreements by Andhra Pradesh power distribution companies and cessation of power supply to Telangana by A.P. Genco had imposed heavy burden on the State exchequer on account of power purchases and A.P. should reimburse the dues.
The Deputy Chief Minister reportedly requested the Central Government to adopt a balanced approach that considers all claims and counterclaims by the two States to ensure that neither State is unduly disadvantaged. This comprehensive approach will strengthen federal cooperation and help avoid prolonged legal disputes, he explained Union Finance Minister Nirmala Sitharaman on Saturday (August 24, 2024). “The total dues amount to ₹6,756.92 crore as directed by the Centre. But, Telangana has counterclaims totalling to ₹24,132 crore,” he said.
Mr. Bhatti Vikramarka sought reimbursement of excess liability of ₹1,052.7 crore allocated to Telangana Power Finance Corporation by A.P. as part of bifurcation contrary to the Reorganisation Act. “Telangana has already paid ₹1,270 (principal and interest) under protest representing the excess liability,” he said requesting the Union Finance Minister to ensure that A.P. Power Finance Corporation reimbursed Telangana for the excess liability paid under protest.
He is learnt to have explained that reimbursement was necessary to rectify financial discrepancies and upholding legal provisions under the Reorganisation Act. The emphasis should be on the importance of fair and accurate apportionment of financial liabilities to prevent any undue financial strain on Telangana. The issue also highlighted the need for equitable treatment and cooperation between the States reinforcing the Centre’s role in ensuring fairness.
