Telangana has announced a one-time settlement scheme to help industries clear long-pending electricity dues, with power utilities expected to recover about ₹2,000 crore while the state prepares for higher demand during the rabi and summer seasons.
Deputy Chief Minister Bhatti Vikramarka Mallu, who also holds the energy portfolio, directed officials to prepare comprehensive proposals for settling outstanding industrial power bills. The scheme is intended to provide relief to eligible industrial consumers while enabling distribution companies to recover arrears. Officials have not yet finalised the number of industries that will qualify or the total dues to be covered.
The announcement came during a review meeting on power demand and supply attended by senior energy and finance officials, Singareni Collieries Company Limited chairman and managing director Buddha Prakash Jyoti, and representatives of the state’s power sector. Vikramarka also instructed finance department officials to speed up the recovery of dues owed by various government departments to Singareni, TG Genco, TG Transco and other electricity-sector organisations.
The meeting reviewed preparedness across generation, transmission and distribution systems amid expectations of rising electricity consumption. Officials also considered the possibility of lower hydel generation linked to the El Niño effect. The deputy chief minister directed the power sector to prepare an action plan to raise daily thermal generation to 140 million units to meet agricultural and domestic requirements.
Average daily thermal generation is currently about 91 million units, according to officials. Production reached 118 million units on a single recent day. Vikramarka asked officials to increase output further and work towards the 140-million-unit daily target, while operating all thermal power plant units at maximum capacity and improving plant load factors.
TG Genco’s average daily thermal generation was 65.90 million units in 2024-25 and approximately 76.46 million units in 2025-26. In the current financial year, the average had risen to 90.97 million units as of October 21, an increase of 14.51 million units, or about 19%, over the previous financial year.
The state is also arranging additional coal supplies for two units at the Yadadri Thermal Power Plant through an alternative agreement with Coal India Limited. Supplies under the arrangement are expected to begin in November. Officials said four of Yadadri’s five 800MW units were already generating electricity, while the fifth unit was synchronised with the grid on October 20.
The recovery plan places industrial arrears and power availability within the same administrative exercise: utilities are being asked to improve collections while generation agencies are being directed to raise output. The exact structure of the one-time settlement, including eligibility, payment terms and implementation dates, is yet to be finalised. Officials are expected to submit comprehensive proposals before the scheme is operationalised.
