Centre directs Telangana to pay power dues to A.P.

Decision follows a high-level meeting held in Delhi recently

August 29, 2022 10:39 pm | Updated 10:39 pm IST - GUNTUR

In a major relief to Andhra Pradesh, the Government of India has ordered Telangana to pay the power dues to A.P. for the electricity supplied to Telangana as per the AP Reorganisation Act, 2014.

The decision follows a high-level meeting held in Delhi recently following the meeting held between Chief Minister Y.S. Jagan Mohan Reddy and Prime Minister Narendra Modi.

The Government of India in exercise of powers under section 92 of the AP Reorganisation Act, 2014, ordered that Telangana State should pay Rs.3,441.78 crore, and late payment surcharge of Rs. 3315.14 crore (up to 31.07.2022) in addition to the principal amount as per the applicable provisions.

The government also ordered that the existing Power Purchase Agreements (PPAs) with respective DISCOMS would continue for both on-going projects and projects under construction. For a period of 10 years, the successor State that had a deficit of electricity shall have the first right of refusal for the purchase of surplus power from the other successor, the order said.

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