Hyderabad: The Telangana High Court on Thursday quashed the Centre’s order directing the Telangana state government and power utilities in August 2022 to pay Rs 6,757 crore for electricity charges and other liabilities to the Andhra Pradesh government within 30 days.
In an order dated August 29, 2022, the Centre, under Section 92 of the AP Reorganisation Act, directed the Telangana government to pay Rs 3,441.78 crore principal amount along with late payment surcharge of Rs 3,315.14 crore towards electricity supplied to Telangana from June 2, 2014, to June 10, 2017.
The TS Southern Power Distribution Company Limited (TSSPDCL) moved the High Court, submitting 31 power purchase agreements (PPAs) executed among APGenco, APTransco and discoms (distribution companies) from 2000 to 2013 in undivided Andhra Pradesh, contending that these PPAs were meant to continue beyond June 2, 2014, but the APGenco unilaterally attempted to disrupt power supply after the state reorganisation.
Further, APGenco unilaterally cancelled the PPAs on June 16, 2014, it submitted.
As the issue escalated, Andhra Pradesh approached the Union ministries of power and home affairs for payment of its dues.
TSGenco informed the Centre that it had to be paid Rs 4,774 crore, while TSTransco cited dues of Rs 1,730 crore from AP and discoms claimed Rs 11,324 crore from AP, moving the High Court in this regard.
The Union government recorded and assured that the views of Telangana state would be considered, but directed Telangana to pay the due to AP in the interim.
On Thursday, the division bench of the Telangana High Court, headed by Chief Justice Alok Aradhe, quashed the Centre’s orders, observing that “orders could not have been passed without affording an opportunity of hearing to TS discoms and therefore, it cannot be said that compliance with principles of natural justice, in the facts of the case, is an empty formality.”
The court said the parties may take recourse or avail of remedies made available in law. “In our opinion, it is eminently desirable that the dispute between them is resolved amicably, preferably through mediation. We hope and trust that the state of Telangana and its distribution companies and the state of Andhra Pradesh and its generating company make an earnest endeavour to sort out the disputes,” the bench said.
