Hyderabad: The state government has approved a plan to move heavy financial liabilities to a new distribution company. Rising loans and unpaid dues have weakened the northern and southern Telangana DISCOMs. Their rankings in national assessments have slipped. Lenders have also increased interest rates. The government now aims to ease this burden.
Officials noted that the decision follows repeated reviews of the sector. They expect the restructuring to improve financial stability. They also believe the new framework can restore confidence among lenders. Moreover, the government wants to bring the older DISCOMs back into a stronger operational position.
Government outlines new restructuring steps under the New DISCOM
The New DISCOM will take ₹9,032 crore in loans from the combined ₹62,897-crore debt. It will also receive ₹26,950 crore in pending electricity-purchase dues. These transfers will reduce pressure on the existing entities and may strengthen their performance. The government intends to channel support directly to the new unit.
The new company will manage electricity connections for agricultural borewells, lift-irrigation systems, drinking-water schemes, Mission Bhagiratha and Hyderabad Metro Water Works. These categories used 1,38,459 million units from 2020 to 2025. The government pays all related bills. It will now route the funds to the new organisation instead of the older ones.
The free-power programme for 28.90 lakh agricultural borewells will also move under the New DISCOM. The government has allocated ₹11,000 crore this year to the existing DISCOMs for this purpose. After the new entity begins operations, the entire subsidy will go to it.
A CMD, directors and 2,000 employees will join the new company on deputation. The team will include engineering, maintenance and administrative staff. The government expects this structure to support smooth operations.
