Telangana has announced a one-time settlement scheme to help industries clear outstanding electricity bills, with power utilities expected to recover about ₹2,000 crore through the initiative as the state prepares for higher electricity 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 pending industrial power dues. The scheme is intended to provide relief to eligible industrial consumers while helping distribution companies recover long-pending arrears. Officials have not yet finalised the number of industries that will qualify or the total dues to be covered.
The announcement was made during a review meeting on power demand and supply attended by Energy Special Chief Secretary Naveen Mittal, Finance Principal Secretary Sandeep Kumar Sultania, Singareni Collieries Company Limited Chairman and Managing Director Buddha Prakash Jyoti and other officials. Vikramarka also directed the finance department to accelerate the recovery of dues owed by government departments to Singareni, TG Genco, TG Transco and other power-sector organisations.
The review focused on ensuring adequate preparedness across generation, transmission and distribution systems. Officials assessed the possibility of reduced hydel generation due to the El Niño effect and an anticipated rise in electricity demand in the coming months. Vikramarka asked officials to prepare an action plan to increase daily thermal generation to 140 million units to support agricultural and domestic demand.
Average daily thermal generation is currently about 91 million units, according to officials, although production reached 118 million units on a single recent day. TG Genco’s average daily thermal generation stood at 65.90 million units in 2024-25 and increased to about 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.
Coal availability for the Yadadri Thermal Power Plant was also reviewed. An alternative supply arrangement has been made with Coal India Limited to ensure uninterrupted coal supplies to two units, with deliveries expected to begin in November. Officials said four of the plant’s five 800MW units were already generating electricity, while the fifth unit was synchronised with the grid on October 20.
The deputy chief minister directed officials to operate all thermal power plant units at maximum capacity, improve plant load factors and monitor daily generation against the prescribed targets. The final eligibility conditions and implementation details for the industrial dues settlement scheme are yet to be worked out.
