Centre Transfer Funds to Andhra Pradesh and ignores Telangana over Power Bill Arrears
The K Chandrashekar Rao (KCR)-led administration has responded angrily to the Union government's decision to transfer Telangana's share of funding to andhra pradesh, citing power bill arrears totaling $6,756 crore for the previous six years. This has caused the KCR-led government to file a high court petition. The high court last week halted the controversial judgment and ordered the Centre not to take any harsh measures against telangana until the dispute is resolved, despite the Union government's assertion that it has the authority to do so under the andhra pradesh Reorganisation Act, 2014.
On the other hand, the telangana administration asserted that andhra pradesh owes telangana 17,828 crore for a variety of services. According to the 2014 Act, the Centre has the authority to make the telangana government follow its instructions, Union Power minister R K Singh stated in a statement to parliament on august 1.
Singh informed the rajya sabha that the Centre would instruct the reserve bank of india (RBI) to make the deductions as per the power bills arrears from the central devolutions to be made to telangana and pay the same to andhra pradesh in response to questions from bjp mp v L narasimha RAO' target='_blank' title='g v l narasimha rao-Latest Updates, Photos, Videos are a click away, CLICK NOW">g v l narasimha rao and YSRCP mp v vijay sai Reddy.
"We have been in consultation with the ministry of law and the ministry of finance for giving a direction to the RBI, so that the accounts of telangana government can be deducted by that amount, which is to be paid to andhra pradesh," Singh said in a written response. He further stated that the Centre has taken action and would soon find a solution.
The power ministry had written to the telangana administration several times, the Union minister added, requesting that it pay the arrears owed to Andhra Pradesh. But in 2022, he added, the telangana government went to the high court and got a stay. However, he continued, "since the period of stay has passed, the Centre may use its powers to enforce the directions."
On the other hand, the telangana administration asserted that andhra pradesh owes telangana 17,828 crore for a variety of services. According to the 2014 Act, the Centre has the authority to make the telangana government follow its instructions, Union Power minister R K Singh stated in a statement to parliament on august 1.
Singh informed the rajya sabha that the Centre would instruct the reserve bank of india (RBI) to make the deductions as per the power bills arrears from the central devolutions to be made to telangana and pay the same to andhra pradesh in response to questions from bjp mp v L narasimha RAO' target='_blank' title='g v l narasimha rao-Latest Updates, Photos, Videos are a click away, CLICK NOW">g v l narasimha rao and YSRCP mp v vijay sai Reddy.
"We have been in consultation with the ministry of law and the ministry of finance for giving a direction to the RBI, so that the accounts of telangana government can be deducted by that amount, which is to be paid to andhra pradesh," Singh said in a written response. He further stated that the Centre has taken action and would soon find a solution.
The power ministry had written to the telangana administration several times, the Union minister added, requesting that it pay the arrears owed to Andhra Pradesh. But in 2022, he added, the telangana government went to the high court and got a stay. However, he continued, "since the period of stay has passed, the Centre may use its powers to enforce the directions."
The telangana government submitted a new plea to the high court on august 8 objecting to the Center's suggestion. A division bench of the court, consisting of chief justice Alok Aradhe and justice T Vinod Kumar, granted a further stay on the Centre's decision on august 8 and ordered that no harsh actions be taken against the telangana government until the matter is resolved in court, according to people familiar with the developments.
In opposition to the stay, senior attorney v MOHAN' target='_blank' title='c v mohan -Latest Updates, Photos, Videos are a click away, CLICK NOW">c v mohan Reddy, who represented the Andhra administration, claimed that the state has been providing power to telangana for three years, ever since andhra pradesh was divided in 2014 on the orders of the Central administration. Therefore, the Centre has every right to step in and handle the situation appropriately, according to Reddy.
The telangana government said in court that the ap government is obligated to pay the former under a number of headings totaling 17,828 crore. The sums owed by andhra pradesh to telangana include: $2,975 crore for debt servicing for the districts of Anantapur and Kurnool; $322 crore for interstate sales; $4,746 crore for market purchases as a result of Andhra ceasing to produce thermal power; and $1,411 crore for hydropower purchases.
On condition of anonymity, a telangana power transmission corporation (TS Transco) official said: "Further, APTransco (Transmission Corporation of Andhra Pradesh) has to pay telangana 712 crore as investment in employees trust at the rate of 7.5%, 190 crore as transmission and state load dispatch centre charges, 612 crore towards discoms bonds along with other charges of 215 crore."
The andhra pradesh government has frequently made submissions to the Centre, pleading for its involvement to ensure the telangana government pays its outstanding power bill arrears, even though the matter is still pending in court. Anoop Singh Bisht, the Union's deputy secretary for energy, addressed a letter to the telangana administration on 30 august of last year requesting that it pay the 6.75 billion rupees ($6,756 crore) it owed for power it had purchased from andhra pradesh within 30 days, failing which the Centre would have to become involved. As a result, the telangana administration filed a high court petition and won Centre stays against the impending involvement.
In opposition to the stay, senior attorney v MOHAN' target='_blank' title='c v mohan -Latest Updates, Photos, Videos are a click away, CLICK NOW">c v mohan Reddy, who represented the Andhra administration, claimed that the state has been providing power to telangana for three years, ever since andhra pradesh was divided in 2014 on the orders of the Central administration. Therefore, the Centre has every right to step in and handle the situation appropriately, according to Reddy.
The telangana government said in court that the ap government is obligated to pay the former under a number of headings totaling 17,828 crore. The sums owed by andhra pradesh to telangana include: $2,975 crore for debt servicing for the districts of Anantapur and Kurnool; $322 crore for interstate sales; $4,746 crore for market purchases as a result of Andhra ceasing to produce thermal power; and $1,411 crore for hydropower purchases.
On condition of anonymity, a telangana power transmission corporation (TS Transco) official said: "Further, APTransco (Transmission Corporation of Andhra Pradesh) has to pay telangana 712 crore as investment in employees trust at the rate of 7.5%, 190 crore as transmission and state load dispatch centre charges, 612 crore towards discoms bonds along with other charges of 215 crore."
The andhra pradesh government has frequently made submissions to the Centre, pleading for its involvement to ensure the telangana government pays its outstanding power bill arrears, even though the matter is still pending in court. Anoop Singh Bisht, the Union's deputy secretary for energy, addressed a letter to the telangana administration on 30 august of last year requesting that it pay the 6.75 billion rupees ($6,756 crore) it owed for power it had purchased from andhra pradesh within 30 days, failing which the Centre would have to become involved. As a result, the telangana administration filed a high court petition and won Centre stays against the impending involvement.