Vijayawada: The topic on power dues of Telangana to Andhra Pradesh will come up for discussion among other unresolved issues when chief ministers of the sister states meet in Hyderabad on Saturday.The AP government has been maintaining that APGenco had supplied power to Telangana Discoms in the aftermath of the bifurcation from June 2, 2014 to June 10, 2017 under clause C.2, Schedule XII, of the AP Reorganisation Act, 2014.The Union power ministry issued an order on August 29, 2022, directing the TG government to pay power dues to AP under Section 92 of AP Reorganisation Act, 2014. This followed submission of several representations from AP to the Centre, saying TG was not clearing its power dues.The power ministry, in its order, stated that there was no dispute regarding the amount to be paid vis-a-vis the power dues including the principal amount of Rs 3,441.78 crore and late payment surcharge of Rs 3,315.14 crore up to July 31, 2022.With a levy of 15 per cent simple interest per annum on the principal amount, it comes to nearly Rs 43 crore per month. When the surcharge is counted in the last two years from July, 2022 to July, 2024, it comes to Rs 1,032 crore. With this, the Telangana dues to AP have gone up to nearly Rs 7,788.92 crore, up to July, 2024.AP’s contention is that it raised loans from the Power Finance Corporation and the Rural Electrification Corporation to generate power and supply it to TG DISCOMs, and that it has to pay a monthly compound interest at the rate of 11.5 per cent to the financiers.APGenco authorities say that though the TG Discoms are supposed to pay for the power supplied to them on a monthly basis, they avoided doing so, resulting in the accumulation of a huge amount as dues. They also say that non-payment of dues from TG is causing a financial burden on them, as they have to pay the principal amount and interest being accumulated for the loans raised, to the financiers.Moreover, the TG government claimed that it purchased power from other agencies from 2014 to 2017 when it fell short of power supplied by AP, and demanded that AP pay `1,700 crore for TG’ purchase of power from other agencies.Meanwhile, the Telangana government moved the High Court, arguing that the Union power ministry had no authority to direct it to pay power dues to AP; and the AP government too filed its replies.However, the High Court issued an order in favour of the Telangana government.Finally, the AP government moved the Supreme Court, claiming that as per provisions of the AP Split Act, Telangana was bound to pay power dues to it and the hearing is scheduled for July 30.A senior official from AP Genco said, “As the AP and TG governments are having a good relationship, we are expecting an amicable solution on the power dues issue.”Sources say that a committee is likely to be set up, to look into all the issues between the two states, to recommend ways for resolving the issues expeditiously.
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