Telangana Govt. moves High Court Over Power Purchase Dispute with Chattisgarh

Update: 2024-09-12 16:28 IST

The Telangana government has taken a significant step in its ongoing dispute regarding power purchase agreements with Chhattisgarh by filing a lunch motion petition in the High Court. The contention arises from outstanding dues related to power transactions, which have led to escalating tensions between Telangana's distribution companies (discoms) and the National Dispatch Center.

The Power Grid Corporation of India raised an alarm over an unpaid amount of Rs. 261 crore, prompting the National Dispatch Center to bar Telangana discoms from participating in a crucial power purchase bid. As a consequence, power exchanges halted bidding for electricity this morning, severely impacting the state's procurement capabilities.

In response to the situation, Trans-Co-Genco CMD Ronald Ross appeared at the High Court to present arguments on behalf of the Telangana government. This legal maneuver aims to address the challenges presented by the Power Grid's actions and to seek a resolution to the financial disputes.

Furthermore, Telangana discoms have also approached the Central Electricity Regulatory Commission (CERC) to seek redress and clarification on the matter. The legal proceedings and administrative actions underscore the complexities and critical nature of power supply agreements in the region, highlighting the balancing act between financial obligations and the need for reliable electricity supply.

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