The power utilities of Telangana and Andhra Pradesh (AP) have come to an understanding on resolving the issue of dispute over mutual dues by approaching the Comptroller and Auditor General (CAG) seeking clarity on accounts, particularly those related to accumulated losses and some employees’ funds, as part of working out an amicable settlement.
This was stated here on Friday by Chairman and Managing Director of TS-Transco and TS-Genco D. Prabhabkar Rao. “After a recent meeting between the officials of the two States the dispute amount is reconciled to ₹4,000 crore, but it is yet to be decided over the share of dues of the two States,” he said addressing a press conference along with CMDs of two Discoms G. Raghuma Reddy and A. Gopal Rao and other senior executives.
That was the reason why they had decided to approach CAG seeking clarification on the accumulated losses and employees’ funds and the CAG opinion would pave the way for an amicable settlement of the dispute, Mr. Rao said. He, however, stated that the talks between the officials of the two States did not discuss on buildings and supply of power in lieu of dues.
Staff division
On the division of staff between the power utilities of the States, the CMD said the one-man D. Dharmadhikari Committee appointed by the Supreme Court had written to the two sides for having a meeting in Hyderabad on August 30 and 31. However, a clarity would come on the possibility of the meeting after one more effort to settle the issue at the Chief Ministers’ level, he noted.
Reacting on the letter of credit (LC) system introduced by the Ministry of Power from August 1 to ensure timely payments to power generation companies by the distribution utilities, Mr. Prabhakar Rao said it was a burden to every power utility and it would ultimately affect quality power supply. Even the Southern Region Power Committee (SRPC) had opposed the decision, he said adding that the State government, however, was supporting Discoms in arranging timely LC.
Farm power
Stating that the power utilities of Telangana were committed to continue uninterrupted free power to the agriculture sector in tune with the government decision, he said that the annual revenue returns (ARRs) for 2019-20 would be filed before the Electricity Regulatory Commission by November 30. He stated that the delays in filing ARRs were common for new States as it would take time for them to get clarity on accounts. They had delayed it this year to include the consumption by irrigation projects such as Kaleshwaram.
On the allegations of inefficiency and corruption in the power utilities made by some political parties, the CMD termed them totally false as all the new power projects with a total capacity of 5,880 MW taken up after formation of Telangana were given to the public sector major BHEL and not to any private sector player, in spite of pressures. He said they were ready to face any inquiry including the one with a sitting judge or by CBI.
