The Telangana state government is contemplating a significant move to hand over certain Electricity Circles in Hyderabad to private companies in a bid to tackle Aggregate Technical & Commercial (AT&C) losses. As part of this initiative, the Hyderabad South Circle, encompassing the Old City area, is slated to be transferred to the Adani Group.
According to Chief Minister A Revanth Reddy, who disclosed this development to the media in Delhi recently, high-level meetings have been conducted by the government. Reports suggest that the Cabinet is also inclined towards entrusting power supply and bill collections to the Adani Group.
Sources familiar with the matter indicated that representatives from the Adani Group have been actively gathering information from the Telangana State Southern Power Distribution Company Limited (TGSPDCL). Their focus has been on understanding the intricacies of power bill collections and the challenges faced within the Old City area over the past few months.
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Transitioning the responsibilities of electricity distribution and bill collection to the private sector requires approval from the State government. Subsequently, Discoms (Distribution Companies) would initiate tender processes to select private entities. Hyderabad South Circle alone accommodates approximately 7.20 lakh electricity consumers.
The Hyderabad South Circle currently reports a staggering 41.4 percent AT&C losses, with the Barkas feeder alone accounting for 90.7 percent of these losses. It is estimated that the Southern Power Distribution Company Limited (SPDCL) incurs losses exceeding Rs. 500 crore annually from this particular circle. Collectively, the annual losses of SPDCL and Northern Power Distribution Company Limited (NPDCL) exceed Rs. 5,500 crore, primarily attributed to technical issues, electricity theft, and bill evasion.
While deliberations continue regarding the Adani Group’s potential involvement in the Old City area, there is ongoing debate within official circles about extending similar privatization policies to other electricity circles that may face financial challenges in the future.
The Old City area presents unique challenges, including resistance from some residents to allow electricity personnel to access meters for readings. Instances of violence against personnel, such as a recent incident where a homeowner attacked a staff member with a knife, underscore the safety concerns in the area. Moreover, meter tampering and theft are prevalent issues further complicating the utility’s operations.
Amidst national efforts to address such issues, the Centre has amended electricity rules to facilitate the privatization of ‘distribution and bill collection’ responsibilities. Against this backdrop, the Telangana state government’s move to engage the Adani Group in the Old City area assumes significant strategic importance.
As developments unfold, stakeholders await further details on how this initiative will reshape electricity management in Hyderabad, particularly in terms of efficiency, service delivery, and financial sustainability.
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