Telangana Speeds Up 3rd Power Discom Plans

Hyderabad: The state government has expedited administrative measures to launch a third power distribution company (discom) by appointing Musharraf Ali Faruqui, chairman and managing director of TGSPDCL, as CMD of the new entity, which is set to commence operations from April 1.

The A. Revanth Reddy administration's decision establishes a dedicated Discom to manage free and subsidised power schemes, aiming to reform the power sector, enhance financial viability, and guarantee 24x7 supply to critical areas.

Deputy Chief Minister Mallu Bhatti Vikramarka explained that it would exclusively handle retailing for subsidised categories, easing the load on TGSPDCL and TGNPDCL. The new discom will handle 24x7 free agricultural power, 200 units free under Gruha Jyothi Scheme for households, and power supply for government schools, colleges, tribal regions, lift irrigation, Mission Bhagiratha, and HMWS&SB needs.

With annual subsidies exceeding Rs 13,992 crore, the subsidies are straining existing discoms. The new one will isolate these, boosting their credit ratings. The Chief Minister has also ordered restructuring of high-interest loans up to 10 per cent.

Official sources state the new Discom inherits Rs 4,929 crore in assets, including 5,22,479 agricultural distribution transformers, alongside Rs 35,982 crore liabilities like arrears and debts. Around 2,000 staff, including 660 engineers, will transfer over to the new discom.

Faruqui, credited with TGSPDCL reforms like pole-mounted transformers for safety and aesthetics, consumer outreach via Currentolla Praja Baata, Quick Response Teams for monsoons, Anti-Bribery Cells and smart meter digitisation, is tasked with leading the new discom.

The entity will enable precise energy monitoring via smart meters on agricultural transformers and seamless supply to essentials like irrigation and water schemes.