In a major relief to about 80 lakh domestic and 21 lakh agriculture power consumers, the Telangana government has decided to take over 75 per cent of loans raised by two power companies -TS northern discom and southern discom. This will have two spin-off benefits: One cushions the consumers from any proposed power tariff hike and the other takes care of Rs 500 crore interest burden on the discoms.
CM K Chandrasekhar Rao gave a formal approval and an announcement in this regard will be made soon. “The chief minister has directed the government to take over 75% of loans of discoms. This will reduce over Rs 500 crore interest burden on discoms every year,” D Prabhakar Rao, chairman and managing director of Telangana Transco and Genco, told TOI. The financial restructu ring plan prepared by TSTransco, which is part of the centrally-sponsored Ujwal Discom Assurance Yojana (UDAY), has been approved by the government. The government will also pump additional funds to improve transmission and distribution network to service 1.05 crore consumers.
Prabhakar Rao said that power tariff hike proposals, power tariff hike proposals, which have been submitted to Telangana State Electricity Regulatory Commission recently, would see a revision to benefit domestic and agriculture consumers.
Though UDAY was launched in 2015, Telangana raised several objections and kept away from the scheme.UDAY scheme does not envisage taking over of loans rai sed to provide public lighting, energy-saving equipment and augmentation of transmission and distribution network. After agreeing to join UDAY, the Telangana government prepared a new financial restructuring plan in which additional funding for the expansion of distribution network and introduction of energy-saving equipment was also included. Donovan Smith Authentic Jersey