In a shocking move, the Revanth Reddy-led government is set to transfer the power distribution systems of the state to the Adani Group. Chief Minister Revanth Reddy disclosed the plan during an informal media chat in Delhi on Thursday.
The pilot project will see the responsibility for electricity bill collection in Hyderabad’s old city handed over to the Adani Group. Citing significant issues with non-payment of electricity bills and assaults on electricity staff during dues collection, the Chief Minister stated this privatization effort aims to address these challenges.
The revenue-sharing model for this arrangement indicates that 75% of the revenue collected by the Adani Group will go to the Telangana government, while the remaining 25% will be retained by the Adani Group. The Chief Minister confirmed that discussions have already been held with the Adani Group, who have agreed to these terms.
Following the initial phase, the responsibility for power bill collection will gradually be handed over to the Adani Group across Hyderabad and eventually throughout the entire state.
Critics have voiced strong concerns over this move, arguing that it could lead to the exploitation of public resources for private gain. The power sector utilities in the state were established with taxpayers’ money, and there is widespread fear that this privatization could result in higher tariffs and diminished public accountability.