Cabinet Approves Free Power Discom

Hyderabad: The state Cabinet on Tuesday approved a major restructuring of the power sector by clearing a proposal to establish a third power distribution company (discom) dedicated to managing free power supply and other subsidy-based electricity schemes. At present, Telangana has two discoms, one each for the northen and southern parts of the state.

The meeting, chaired by Chief Minister A. Revanth Reddy at the Secretariat, held extensive deliberations for more than four hours on reforms aimed at strengthening the power sector, promoting renewable energy and advancing clean and green power initiatives.

With the creation of the new discom, all power subsidy schemes being implemented by the state government, including free electricity for agricultural pump sets, the Gruha Jyothi programme offering 200 units of free domestic supply, free supply to government schools and colleges, drinking water schemes like Mission Bhagiratha and safe drinking water supply systems, lift irrigation projects as well as the power requirements of the HMWS&SB come under its jurisdiction.

The Cabinet also reviewed the rising energy demand in the state, projected requirements for the next decade, and generation estimates presented through a detailed Power Point briefing by officials.

Aligned with the Centre’s updated renewable energy norms, the Cabinet decided to increase the share of renewable energy in the state’s power mix. As part of this move, the government will invite tenders soon for procuring 3,000 MW of solar power through five-year power supply agreements. In parallel, it approved calling for tenders to procure 2,000 MW of pumped storage power, also under similar five-year terms.

Officials noted that Telangana possesses several suitable locations for setting up pumped storage power plants, and the cabinet approved giving clearances to companies and investors interested in establishing units up to 10,000 MW capacity.

The government will allocate land and ensure water availability for pumped storage power plants, with the condition that the generated power be first supplied to the state’s Discoms. In another key decision aimed at attracting new industries and boosting investor confidence, the cabinet approved a green energy policy enabling upcoming industries to generate their own captive power without any upper limit on capacity. Existing industries will continue to receive power under the current supply framework.

The Cabinet reviewed plans for expanding thermal power capacity. It approved the proposal to entrust the construction of the new 800 MW unit at Ramagundam Thermal Power Station to NTPC. Officials were instructed to study the feasibility of setting up additional NTPC-led power plants at Paloncha and Makthal and compare unit costs with those of similar projects handled by the state’s Genco before taking a final call.

A major urban infrastructure upgrade for Hyderabad was also cleared, with the Cabinet approving the introduction of an underground power cable system in GHMC limits, similar to the model implemented in Bengaluru.

Preliminary estimates suggest that the project may cost around `14,725 crore. The city will be divided into three power circles for execution, and the plan includes shifting T-Fibre lines and other cable networks underground. Officials were directed to prepare a comprehensive working plan and coordinate with concerned companies.

In other decisions, the Cabinet approved the allocation of 20.28 acres of government land in Pedda Nallabelli of Dummugudem mandal in Bhadradri Kothagudem district for the construction of an SC, ST, BC Young India Integrated Residential School. It also sanctioned 40 acres in Jaggannapeta village of Mulugu district for establishing a sports school.

Additionally, the government cleared the setting up of a new Advanced Technology Centre (ATC) in Jubilee Hills constituency and approved the establishment of ATCs in six more ITIs, adding to the existing network of 56 centres across the state.