The Telangana government, under KCR, made crucial decisions in 2014 to address the power shortage, including purchasing electricity from Chhattisgarh at Rs. 3.90 per unit. Facing an acute power shortage, the KCR government made strategic moves to secure affordable electricity. They negotiated a deal with Chhattisgarh to buy power at Rs. 3.90 per unit, significantly lower than open market prices.
To facilitate this, they cooperated with Power Grid Corporation of India Limited (PGCIL) to complete the Wardha-Dichpally transmission line, ensuring a dedicated corridor for efficient power transmission to Telangana. The immediate benefits of these actions were substantial. Within six months of KCR’s tenure in 2014, Telangana began providing 24-hour electricity to all sectors. This move revitalized the agricultural and industrial sectors, increased electricity consumption, and improved the overall quality of life in the state. Agricultural yields, industrial production, and IT exports saw notable growth, along with increased employment opportunities.
Recently, a leak from the state government sources suggested that Telangana’s power companies incurred unexpected losses due to high transmission charges, claiming that the actual cost per unit, including these charges, amounted to Rs. 5.64. The leak claimed that it purportedly resulted in an additional burden of around Rs. 3,110 crores.
However, paying transmission charges to PGCIL is standard practice and the foresight of KCR in booking a dedicated corridor and cooperating with PGCIL minimized potential costs and ensured a steady power supply during a critical period.
The Congress government, which followed, has faced criticism for its handling of the power sector. During peak hours, it has purchased electricity at significantly higher rates (Rs. 8-12 per unit) compared to the KCR administration’s Rs. 3.90 per unit deal.
In response, the Congress government has attempted to shift blame, alleging irregularities in the previous administration’s power purchase agreements. However, these claims have been met with skepticism, as the KCR government had direct agreements in place with central government sector organizations and state governments where the scope of corruption is zero.
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