The much awaited Telangana budget will prove to be a shot in the arm for cash-strapped discoms which are unable to get their dues from government departments, owing to lack of funding.
Various government departments owed more than Rs.1,500 crore to both the discoms till September end; major chunk of the bills pertain to Panchayat Raj and Rural Development department. Other defaulters include the Municipal Administration and Urban Development and Irrigation.
The Panchayat Raj department owed close to Rs.850 crore by the end of July, constituting more than 60 per cent of the total arrears, an official informed. Power dues from various municipalities and GHMC amounted to Rs.165 crore.
Ironically, arrears accruing from the Energy department’s offices within the Southern Power Distribution Company (TSSPDCL) by September end, amount close to Rs. 20 crore.
Hyderabad Metro Water Supply and Sewerage Board is one more major defaulter, with about Rs.173 crore payable to the TSSPDCL.
While it is a usual practice by the departments to pay the power arrears at once after the budget is released each year, it results in an additional burden of 18 per cent late payment surcharge compounded every month. It is not any easier on the discoms as they are dependent on bill collections even for payment of salaries.
Due to the non-realisation of government arrears, efficiency of the discoms too has come down in terms of bill collections, officials say. This could badly reflect on the overall creditworthiness of the companies.
With no other way left to collect the amounts payable at the department level, the discoms are resorting to arm-twisting tactics to collect locally.
“Pressure is mounting on us to increase the collections. We have begun to disconnect power to the defaulting offices, so that they pay at least part of the amount,” informed a field-level engineer from the TSSPDCL.
