HC seeks Centre's file note on TS power payments to AP

Hyderabad: The Telangana High Court on Saturday directed the Centre, by June 9, to furnish its file note directing the Telangana power department to pay Rs. 6,757 crore to its Andhra Pradesh counterpart, in an order dated August 29, 2022, to clear supply dues for the period of June 2, 2017, to June 10, 2017.

The division bench of Chief Justice Ujjal Bhuyan and Justice N. Tukaramji issued the directions over petitions filed by the Telangana State Southern Power Distribution Company Limited (TSSPDCL) and Telangana State Northern Power Distribution Company Limited (TSNPDCL), challenging the August 29, 2022 order of the Union government.

The bench, in the hearing, also suggested that the Andhra Pradesh and Telangana power utilities negotiate between themselves to end the dispute.

Telangana power utilities argued in the Telangana High Court that the Union government was discriminating against it on the issue, arguing that the orders were issued without considering the dues owed by the AP power utilities or violations made by AP distribution companies (discoms) in power supply.

Vaidyanathan, senior Supreme Court counsel, representing the TSSPDCL and TSNPDCL, contended that AP power generation companies (GENCOs) stopped power supply to Telangana upon bifurcation, despite the AP Reorganisation Act mandating the states to supply power to one another for 10 years, in case of a shortfall or deficiency in either state.

The counsel said that Telangana spent over Rs. 4,740 crore to buy power from the market, which was not considered by the Union government.

Meanwhile, senior counsel C.V. Mohan Reddy, representing AP power utilities, argued that the AP utilities were on the verge of becoming non-performing assets due to non-payment of dues by Telangana.

“The power companies obtained financing, produced electricity, and supplied Telangana power utilities,” the senior counsel said, adding that the Bifurcation Act applied only to controversial problems from the pre-bifurcation period and not to authority that was provided after the split.