₹10K cr. for power subsidy a big relief to discoms

In a big relief to the ailing power utilities of Telangana, the State government has increased the budgetary support to power sector by over ₹2,150 crore for 2020-21, compared to last year, taking it to ₹10,406 crore including enhanced subsidy of nearly ₹10,100 crore.

With this, in addition to the government’s go-ahead given for increase in the power tariff, the power utilities, particularly the two distribution companies (discoms), are expected to tide over the huge revenue gap to a large extent. The budgetary support for power subsidy component for 2019-20 was about ₹8,000 crore.

In addition, the government has already issued instructions to various departments to clear energy consumption dues to the discoms, already standing at a staggering ₹10,000 crore, at least in instalments. With the help of increased subsidy component and increase in tariff, the discoms are expected to manage the niggling issue of letter of credit to be issued to the power suppliers every month.

Although the budgetary support to the irrigation sector is pegged at ₹11,053 crore, the outlay for capital expenditure is only ₹3,606 crore. The outlay for establishment expenditure of ₹7,447 crore, however, includes the costs of maintenance of major lift irrigation projects in operation including its power bills. A lion’s share of capital expenditure for major projects such as Kaleshwaram, Palamuru-Rangareddy, Sitarama, Kanthanapally and others is expected to be met from institutional borrowings.

According to the statistics released by the government as part of the socio-economic outlook, about 51.77 tmcft water has been lifted from Godavari river (Medigadda barrage) through Kannepally pump house followed by 46.53 tmcft at Gunjepadugu pump house (Annaram), 44.06 tmcft at Goliwada pump house (Sundilla), 59.94 tmcft at Nandi Medaram pump house and 57.64 tmcft at Laxmipur pump house till March 4 starting from June 21, when they became operational.

On Mission Kakatiya, the government stated that restoration of 21,601 minor irrigation tanks was completed out of works taken up on 27,584 tanks in four phases with an expenditure of ₹4,353 crore. Storage capacity of 9 tmcft water was restored with the completed works.

The Hindu
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