Telangana power utilities’ debt crosses ₹1 lakh crore
HYDERABAD: The combined debt of Telangana’s power utilities has crossed ₹1,00,000 crore, reaching a record high, according to a report submitted to the state government.
The utilities are paying annual interest of 9–10%, which translates into a burden of around ₹9,000 crore. Of the total debt, ₹31,785 crore was borrowed for power purchases.
From 2014 to 2023, the utilities carried debt of about ₹80,000 crore. This has now climbed past ₹1,00,000 crore.
Subsidy support falls short
The government has directed the distribution companies (discoms) to supply free power to agriculture and 200 units a month to households. Against monthly subsidy needs of at least ₹1,500 crore, the government has been releasing only about ₹983 crore. Sources said subsidy dues of nearly ₹1,000 crore from April to August remain pending.
Genco sells over 10 crore units of power daily to discoms. The discoms owe Genco bills worth nearly ₹10,000 crore, while Genco has in turn not cleared ₹12,000 crore owed to Singareni Collieries for coal purchases. Discoms also owe about ₹10,000 crore to Singareni Thermal Plant for power bought. Despite pending dues, both Genco and Singareni, being state-owned, continue supply.
Mounting financial stress
Losses in supply and distribution, coupled with unpaid bills from government departments and schemes, have worsened the utilities’ finances. Between 2014 and 2025, accumulated losses of discoms touched ₹76,021 crore. In the last financial year alone, the losses were ₹7,209 crore.
As of now, the debts of different utilities are: Genco ₹31,528 crore, Southern Discom ₹38,092 crore, Northern Discom ₹22,131 crore, and Transco ₹8,429 crore totalling ₹1,00,180 crore.
