Centre to assist Andhra Pradesh to recover Rs 6,756-Cr power dues from Telangana

NEW DELHI: Union Minister of Power RK Singh on Tuesday assured the sibling State of Andhra Pradesh that his ministry would initiate steps to recover Rs 6,756 crore due from Telangana for the electricity supplied to the latter after the reorganisation of the State.

Replying to a question raised by YCP MP V Vijaya Sai Reddy in Rajyasabha, the Union Minister informed the house that the Government had taken up the issue with the law and finance ministries to find out ways of recovering the long-pending amount from Telangana.

The Minister said that the new State of Telangana was initially allowed to receive power from Andhra Pradesh as the new State had less number of power generating stations compared to that of Andhra Pradesh. Initially, the State of Telangana paid the power bills regularly, but after a while, it stopped honouring its commitment. He said that the Centre held several rounds of talks with Telangana about the pending payment but there was no progress.

Finally, the Andhra Pradesh Government suggested a deduction of the due amount from the devolution of the taxes due for Telangana from the Centre. The Rajya Sabha member sought clarification from the Union Power Ministry in this regard and the time frame for the payment.

The Union Minister said that his ministry would also seek advice from the Reserve Bank of India (RBI) on ways to discipline States that refuse to pay inter-state dues pending for a long time. He made it clear that it would be the responsibility of the Union Government to intervene and restore financial discipline.