Telangana Govt Claims ₹6,000 Crore Loss Due to Alleged Power Purchase Irregularities

GG News Bureau
Hyderabad, 18th June. The Telangana government has alleged staggering financial losses amounting to ₹6,000 crores, attributing them to irregularities in power purchase agreements (PPAs) under the previous administration led by the Bharat Rashtra Samithi (TRS). According to officials, these agreements were not properly ratified by the Telangana State Electricity Regulatory Commission (TSERC), leading to significant financial implications for the state exchequer.

Former Chief Minister K Chandrasekhar Rao, popularly known as KCR, has come under scrutiny as a Commission of Inquiry, appointed to investigate suspected irregularities, issued notices regarding these PPAs. In response, KCR had questioned the authority of the inquiry, particularly targeting Justice Narasimha Reddy, the head of the probe panel, and alleging bias.

Documents released to the media on Tuesday revealed that PPAs with Chhattisgarh had not been sanctioned by the TSERC, despite the agreements being operational from the end of 2017. This oversight allegedly forced Telangana to procure additional power from the market at a higher cost, resulting in an extra expenditure of ₹2,083 crore between 2017 and 2022.

A senior official clarified, “The discrepancy arises from the fact that the claimed cost of ₹3.9 per unit for power was actually ₹5.64 per unit, including associated expenses. This resulted in Telangana purchasing 17,996 million units of power for ₹7,719 crore during the period in question, significantly exceeding the agreed-upon prices.”

KCR, who led Telangana as its first chief minister post-statehood in 2014, remained a central figure until his party’s defeat in the recent elections. The Congress party, securing 65 seats including a recent bypoll victory, currently holds a majority in the 119-member Telangana Assembly.

The allegations and revelations regarding these PPAs have sparked political controversy, with KCR vehemently denying any wrongdoing and challenging the legality of the inquiry itself. The situation continues to unfold as stakeholders await further developments from the Commission of Inquiry.