Telangana Clears Third Power DISCOM to Serve Subsidised Users

Overview

• Telangana’s Energy Department issued orders on Wednesday approving a third distribution company and directing the CMDs of TGSPDCL and TGNPDCL to initiate follow-up action.
• The new utility will exclusively handle electricity retailing for designated government-supported categories, with a focus on free farm power and other subsidised users.
• The government cites a persistent gap between average billing rates and cost of service as a key factor behind the weakened finances of the two existing DISCOMs.
• Officials say strained balance sheets have limited fund-raising, slowed system upgrades, and hindered participation in the Revamped Distribution Sector Scheme.
• The third DISCOM will operate alongside the Northern and Southern companies that now cover 18 and 15 districts, and details on its boundaries, structure, funding, and start date are pending.