Telangana power utilities debt touches ₹1 lakh crore
HYDERABAD: Telangana’s power utilities have accumulated total liabilities of ₹1,02,328 crore, reflecting mounting financial stress across generation, transmission and distribution entities.
Of the total debt, ₹45,373 crore has been borrowed from the Rural Electrification Corporation, while ₹43,802 crore was taken from the Power Finance Corporation. Loans from banks account for ₹13,153 crore.
Discom borrowing and mounting losses
The Southern Power Distribution Company of Telangana Limited (SPDCPL), headquartered in Hyderabad, and the Northern Power Distribution Company of Telangana Limited (NPDCPL), based in Warangal, together borrowed ₹53,101 crore for power purchases. For project construction, Telangana State Power Generation Corporation raised ₹13,582.3 crore from Power Finance Corporation at annual interest rates ranging from 3.3% to 11.5%, and ₹17,010.95 crore from other agencies at interest rates between 8.3% and 11.5%. In addition, bank borrowings stood at ₹33,058 crore.
The repayment of loans taken by the distribution companies is scheduled to continue until the 2034–35 financial year. The Telangana State Transmission Corporation alone has liabilities of ₹1,840 crore.
When Telangana was formed, the combined losses of the two discoms stood at ₹12,186 crore. Of this, SPDCPL accounted for ₹8,611 crore, while NPDCPL’s share was ₹3,545 crore. Due to a wide gap between revenue and expenditure, the discoms have not posted profits in any year since 2014–15.
By the end of the 2024–25 financial year, losses of the southern discom alone had risen to ₹41,105 crore, while losses of the northern discom reached ₹17,984 crore. The utilities continue to purchase electricity but remain unable to clear dues on time.
Outstanding dues to generators and suppliers
The discoms owe ₹2,512 crore to central power generation companies, including NTPC, NLC India and NPCIL SEZ units. Payments due to Telangana Genco stand at ₹11,279 crore.
Dues of ₹441 crore are pending to Andhra Pradesh Genco, where the matter remains under dispute. Outstanding payments also include ₹12,310 crore to Singareni Collieries Company, ₹1,368 crore to Telangana Transco and ₹1,340 crore to Chhattisgarh-based suppliers. Bills of ₹450 crore are pending to non-conventional energy producers and ₹149 crore to semi-coke suppliers. Overall, electricity purchase dues alone total ₹32,850 crore.
Separately, Telangana Genco owes ₹16,465 crore to Singareni.
Power mix key to cost reduction
The average cost of electricity purchased from central generating stations is ₹5.8 per unit, while power procured from Telangana Genco costs ₹5.4 per unit. Power bought on the Indian Energy Exchange averages ₹3.9 per unit.
Electricity from independent power producers costs ₹1.6 per unit, while power from non-conventional energy sources costs ₹4.5 per unit. Solar power costs less than ₹1 per unit. Officials say a balanced mix of solar and thermal power is essential to keep tariffs viable.
Government departments owe ₹46,424 crore
As of September 1, 2025, outstanding dues from various government department connections to the discoms stood at ₹46,424 crore.
The Kaleshwaram Lift Irrigation Project alone accounts for ₹8,645.7 crore. Other irrigation projects owe ₹14,722.3 crore, while dues from the Mission Bhagiratha drinking water scheme stand at ₹6,108 crore. Outstanding payments from the Hyderabad Metropolitan Water Supply and Sewerage Board amount to ₹7,250.5 crore.
The energy department owes ₹51.3 crore, with arrears from other departments continuing to mount. Officials said timely payments by government departments would allow discoms to clear dues to Gencos, which in turn would enable Gencos to pay Singareni.
