The central government is aggressively attempting to resolve the dispute between Telangana and Andhra Pradesh over outstanding electricity supply dues. Union Power Minister R K Singh claimed that the Power Ministry is engaging with the Finance Ministry about instructing the Reserve Bank of India (RBI) to remove the sum owed to Andhra Pradesh from Telangana’s account.
Telangana owes Andhra Pradesh approximately Rs 6,000 crore for electricity supplies, including late payment penalties. Telangana had power generation capacity problems following the restructuring of Andhra Pradesh in 2014, as key power plants were located in Andhra Pradesh.
The central government can control power supplies between the two states under the Andhra Pradesh Reorganization Act of 2014. Andhra Pradesh first supplied power to Telangana, however payments were eventually discontinued. The central government served Telangana with a notice to clear the debts, but it was disputed in court and temporarily halted.
Following discussions with the Ministry of Law and Justice, the central government is now considering deducting the dues from Telangana’s accounts via the RBI. The specific mechanism for enforcing the central government’s direction is being developed in collaboration with the Ministries of Finance and Law.
The YSR Congress Party, which is currently in power in Andhra Pradesh, queried whether Telangana’s dues may be adjusted from the state’s pool of taxes. This decision will be made after consultations with the appropriate authorities.
(This story is sourced from a third-party syndicated feed. Raavi Media takes no responsibility or liability of any nature. Raavi Media management/ythisnews.com can alter or delete the content without notice for any reason.)
