The BRS government in Telangana, led by K Chandrashekar Rao, has caused Telangana Discoms to lose over Rs 6,000 crore due to Power Purchase Agreements (PPAs) with Chhattisgarh. The price per unit in these agreements was supposed to be Rs 3.90, but the actual purchase left the State power companies with huge losses.
The total power purchased from Chhattisgarh was 17,996 million units, with payments made so far totaling Rs 7,719 crore and dues to be paid amounting to Rs 1,081 crore. Additional charges and disputes over arrears have further increased the cost per unit to Rs 5.64.
The lack of smooth supply from Chhattisgarh since 2017 forced Telangana Discoms to buy power from the open market, leading to an additional burden of Rs 2,083 crore by 2022. The electricity supply was stopped in April 2022, while booking unnecessary corridors in advance incurred more losses.
Chhattisgarh cancelled a corridor halfway due to the impossibility of getting electricity, resulting in notices from PGCIL for compensation. The Telangana ERC has not approved the power purchase agreement yet, sparking debates over payments made without approval.
