Employee unions oppose Rythu Discom, urge govt to drop plan

Hyderabad: Power sector experts, employee unions, farmer organisations and civil society representatives on Sunday urged the Telangana govt to withdraw its proposal to form the Telangana Rythu Power Distribution Company Limited (TGRPDCL), warning that the move could weaken the existing discom structure and deepen the financial stress in the power sector.

The demand was raised during a five-hour consultation meeting convened to discuss the state govt’s proposal and its application for a distribution licence before the Telangana Electricity Regulatory Commission (TGERC). Representatives from employee unions, NGOs, research organisations, farmer associations, industry bodies and independent experts participated in the deliberations.

Following the detailed discussions, the participants unanimously appealed to the state govt to reconsider the proposal and instead focus on clearing the accumulated arrears owed by the govt and its agencies to the existing discoms within a fixed timeline. According to the experts, timely payment of dues would strengthen the financial health of the utilities and improve operational efficiency without creating a parallel distribution structure.

The participants also raised concerns over the viability and practicality of carving out a separate rural distribution company exclusively for the agriculture sector. Several speakers reportedly argued that bifurcating the distribution system could create administrative complications, increase operational costs and affect power sector stability in the long run. The workshop was held on the premises of the Centre for Economics and Social Studies.

The meeting further appealed to TGERC to reject the distribution licence application filed by TGRPDCL, citing what they described as deficiencies in the proposal and the absence of clarity on financial sustainability and operational mechanisms. Alternatively, they requested the commission to return the application with a detailed advisory asking the govt to revisit the proposal in light of the concerns expressed by stakeholders.

The experts emphasised that reforms in the power sector should prioritise strengthening existing institutions, improving financial discipline and ensuring transparency rather than creating new entities without addressing the underlying structural and financial issues faced by the discoms.