Telangana shifts major electricity dues to new DISCOM
Hyderabad: The government has approved the transfer of major electricity-sector liabilities to a newly created distribution company. The existing DISCOMs have faced rising loans and arrears. These pressures reduced their national rankings. Higher interest rates added further strain. The new company aims to ease this load.
Officials explained that this decision follows repeated financial reviews. They noted that the older DISCOMs need relief from large arrears. They also expect better operational results after restructuring. Moreover, they want to stabilise long-term planning across the sector.
Government initiates liability transfer under the New DISCOM
The New DISCOM will receive ₹9,032 crore from the combined ₹62,897-crore debt. It will also take over ₹26,950 crore in pending dues for electricity purchases. The shift may improve the financial health of existing utilities. The government plans to route key support to the new entity.
Agricultural borewells, lift-irrigation services, drinking-water schemes, Mission Bhagiratha and Hyderabad Metro Water Works will come under the new unit. These services used 1,38,459 million units between 2020 and 2025. The government pays all related bills and will now release funds to the new company.
Free electricity for 28.90 lakh borewell connections will also shift to the New DISCOM. The state allocated ₹11,000 crore this year to the existing DISCOMs for this programme. The subsidy will be sent to the new company going forward.
A CMD, directors and 2,000 deputed staff will manage the organisation. The team will include engineers, maintenance staff and administrative groups.
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