Telangana has, once again, been barred from purchasing or selling power by the Centre, ostensibly until dues to power plants are settled. Telangana has also cleared Rs 1,370 crore in dues, which the government has ignored.
The Centre banned 27 distribution companies (discoms) from purchasing or selling electricity in power exchanges. As a result of their failure to pay dues to generation companies (gencos). While some states immediately began clearing their outstanding amounts to prevent a power crisis, the affected states said the move could cause power outages.
The decision of the union government has sent power officials into a tizzy as not only were the power dues cleared, but also the Telangana High Court’s decision was ignored. In a petition dated April 25, 2022, the High Court gave Telangana Discoms and the Telangana State Power Coordination Committee (TSPCC) the freedom to operate through the power exchange and secure power through open access while the writ petition was being heard.
In response to questions from Praapti portal users, officials of the Telangana Energy Department confirmed that all payments indicated had been made. It was requested by the Telangana utility companies that “no further action should be taken preventing them from purchasing power from the Telangana exchange or from selling it.”
Chhattisgarh, Maharashtra, Madhya Pradesh, Karnataka, Andhra Pradesh, Tamil Nadu, Jammu & Kashmir, Rajasthan, Bihar, Jharkhand, Manipur, and Mizoram are also prohibited from conducting power transactions.
As a result of this sudden development, officials from the energy department were frantically making arrangements to ensure the State had an uninterrupted power supply. Due to the Centre’s decision, authorities in 13 states are bracing for power outages.
A contempt petition was being drafted by officials to knock on the door of the High Court. An official from the power company said a contempt of court petition would be filed in the High Court on Monday. According to him, the Centre has created problems for Telangana’s power utilities in order to browbeat the state.
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