Representative picture only.
The Telangana State Government is in favour of a holistic resolution of the disputes with the neighbouring State of Andhra Pradesh relating to electricity tariffs in order to maintain good inter-state relations and ensure fair financial transactions in accordance with the Andhra Pradesh Reorganisation Act, 2014.
Deputy Chief Minister Mallu Bhatti Vikramarka has asked the central government to facilitate a comprehensive resolution of all energy disputes, possibly through mediation as suggested by the Supreme Court, instead of focusing on isolated issues.
Electricity consumers in Andhra Pradesh will have to wait until next fiscal year for a tariff reduction
The demand is significant because the dispute over electricity tariffs between the two Telugu states has been raging for over a decade and both states continue to stick to their respective positions.
While Andhra Pradesh insists that Telangana’s power utilities are entitled to an amount of Rs 6,756 crore, Telangana insists that the neighbouring state is actually entitled to an amount of Rs 24,132 crore.
The Telangana government stated that the unilateral termination of the power purchase agreements by the Andhra Pradesh Power Distribution Companies and the suspension of power supply to Telangana by AP Genco had placed a heavy burden on the state exchequer due to power purchases and AP had to repay the dues incurred.
The deputy chief minister reportedly urged the central government to adopt a balanced approach that takes into account all the demands and counter-demands of the two states to ensure that neither state is unduly disadvantaged. This comprehensive approach will strengthen federal cooperation and help avoid protracted litigation, he told Union Finance Minister Nirmala Sitharaman on Saturday (August 24, 2024). “The total debt as per the directions of the central government is Rs 6,756.92 crore. However, Telangana has counter-demands totaling Rs 24,132 crore,” he said.
Mr. Bhatti Vikramarka demanded repayment of the excess liability of ₹1,052.7 crore allocated by AP to Telangana Power Finance Corporation in demerger contrary to the Reorganisation Act. “Telangana has already paid ₹1,270 crore (principal and interest) under protest, which constitutes the excess liability,” he said, urging the Union Finance Minister to ensure that AP Power Finance Corporation refunds the excess liability paid under protest to Telangana.
He is reported to have stated that the repayment was necessary to resolve financial discrepancies and comply with the statutory provisions of the Reorganisation Act. The focus should be on the importance of fair and accurate sharing of financial liabilities to avoid undue financial burden on Telangana. The issue also underlined the need for equitable treatment and cooperation among the states, thereby enhancing the role of the central government in ensuring justice.
