Telangana Cabinet To Focus On Power Sector Reforms Today

Hyderabad:The state Cabinet will meet on Tuesday at the Secretariat for approving proposals related to power sector reforms among other issues.

According to official sources, the Cabinet meeting assumes significance as the state government prepares for a series of major events and administrative decisions, including the Praja Palana Vijayotsavalu celebrating the Congress government’s second anniversary on December 7, the Telangana Rising Global Summit scheduled at Bharat Future City on December 8 and 9, the finalisation of the Gram Panchayat election schedule, and arrangements for the Rythu Bharosa scheme for the rabi season.

The official sources said that power sector issues will dominate cabinet meeting deliberations. In the previous cabinet meeting, proposals were placed for setting up an 800 MW thermal power plant at Ramagundam, along with 4,500 MW pump storage power projects and a 1,500 MW battery energy storage system.

The proposals drew objections, particularly regarding the financial burden of taking on fresh loans for a new thermal plant. During the 2023 Assembly elections, the Congress had promised to dismantle the old, defunct unit at Ramagundam and build a new one.

However, questions have been raised over whether a new plant is necessary when NTPC is already constructing a 2,400 MW thermal plant at Ramagundam specifically for Telangana under the Andhra Pradesh Reorganisation Act 2014.

The state government has permission to procure only 800 MW from this project, but some officials argue that the remaining 1,600 MW could be sourced from the open market for lower costs instead of building a new unit, which will burden state exchequer. The cabinet is expected to revisit cost estimates and other technical aspects before the Energy Department presents a revised proposal on Tuesday.

The government is also examining a proposal to create a third power distribution company. Telangana currently has two discoms, and Chief Minister A. Revanth Reddy has directed officials to study the feasibility of forming an additional one to manage all free power schemes under a unified structure. This issue too will come up for discussion, sources added.

Another key agenda item is the Annual Revenue Requirement (ARR) report of Discoms. Discoms have urged the government to permit a power tariff hike from April 1 next year, citing rising debts and financial stress. Under the Electricity Act, discoms must submit ARR reports to the State Electricity Regulatory Commission by November 30 each year. Failure to meet this deadline in the past resulted in penalties from the TSERC. With local body elections approaching, however, cabinet approval for a tariff hike remains uncertain, sources said.

Preparations for the Telangana Rising Global Summit will also be reviewed. The government has decided to unveil the “Telangana Rising 2047” vision document on December 9 during the event, outlining sector-wise targets and strategies to expand the state’s economy to $3 trillion by 2047. The cabinet will hold detailed discussions on finalising key components of the document.