KCR's power deals cost Telangana Rs 6,000 crore: Sources


KCR's power deals cost Telangana Rs 6,000 crore: Sources

KCR was the Chief Minister of Telangana between 2014 and 2023.

The Telangana government estimates a loss of up to Rs 6,000 crore to the state exchequer as it alleges irregularities in the power purchase agreements drawn up by the previous Bharat Rashtra Samithi government.

After the notice was issued by the commission of inquiry set up to probe the suspected irregularities, former chief minister K Chandrasekhar Rao had said that a probe into the decision of the Electricity Regulatory Commission could not be ordered. He also questioned the impartiality of former Justice Narasimha Reddy, who is heading the probe panel.

On Tuesday, documents were made available to the media to show that the Power Purchase Agreement (PPA) with Chhattisgarh was not ratified and approved by the Telangana State Electricity Regulatory Commission (TSERC).

Mr. Rao, popularly known as KCR, has been critical of the Justice Narasimha Reddy Commission of Inquiry, even calling for the recall of the former Chief Justice of the Patna High Court. Declaring the commission as illegal, it argued that it did not have the authority to investigate issues related to the PPA and the construction of the power plant after TSERC had sanctioned them.

However, officials have clarified that though the contract with Chhattisgarh was operational till the end of 2017, the power supply was limited to 1000 MW only, which meant that Telangana had to buy additional power from the market. For which additional cost had to be paid. 2,083 crore between 2017 and 2022.

“The previous government had claimed to pay Rs 3.9 per unit for electricity, but the actual cost was Rs 5.64 per unit, including other costs. Between 2017 and 2022, Telangana had purchased 17,996 million units for Rs 7,719 crore. claimed that it paid Rs.1,081 crore for power to Chhattisgarh, but the transmission charge for power supply was Rs.1,362 crore, taking into account all these costs, the cost per unit was Rs.5.64. 3,110 crore from the fixed price of Rs 3.9 per unit.” A senior official explained.

KCR, who played a key role in the movement for a separate Telangana, became its first chief minister after its formation in 2014 and held the seat until last year, when his Bharat Rashtra Samithi was comprehensively defeated by the Congress. Hoi, who succeeded. 64 out of 119 assembly seats in the state. After the recent by-elections, this number went up to 65.

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