Hyderabad: The debts of Telangana’s power distribution companies (DISCOMs) have crossed a record Rs.1 lakh crore, according to a report submitted to the state government.
The report revealed that of this amount, Rs.31,785 crore was borrowed for power purchases alone, while the companies are paying nearly Rs.9,000 crore annually in interest. From 2014 to 2023, DISCOM debts stood at around Rs.80,000 crore, which have now risen sharply past the Rs.1 lakh crore mark.
The government has directed DISCOMs to continue supplying free electricity to the agricultural sector and provide 20 free units per month to households. For this, the government is releasing Rs.983 crore every month as subsidy, though the DISCOMs have been demanding at least Rs.1,500 crore monthly. Reports indicate that around Rs.1,000 crore in subsidy payments, due between April and August, remain pending.
GENCO, which generates power, supplies over 10 crore units daily to the DISCOMs. However, DISCOMs owe Rs.10,000 crore in unpaid bills to GENCO. In turn, GENCO has not cleared Rs.12,000 crore owed to Singareni Collieries for coal purchases. Additionally, DISCOMs also owe Singareni’s thermal power plants around Rs.10,000 crore for purchased power.
Despite these arrears, GENCO and Singareni—both government-owned—continue to supply power.
The report also pointed out that more than 10% of purchased power is lost during transmission and distribution. Non-payment of electricity bills by government departments and beneficiaries of welfare schemes has further worsened the situation.
Between 2014 and 2025, the total accumulated losses of DISCOMs have reached Rs.76,021 crore, with last year alone accounting for Rs.7,209 crore in losses.
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