Hyderabad: Siddipet Bharat Rashtra Samithi (BRS) MLA T Harish Rao has written to the Telangana Electricity Regulatory Commission (TGERC), strongly objecting to the state government’s proposal seeking a distribution license for the proposed “Rythu Discom,” and urged the Commission to reject the application.
In his objections submitted to the Commission, Harish Rao raised several concerns over the proposed third discom.
He questioned why the state government announced that the Rythu Discom would begin operations from June 2, even before the public hearing process was completed, alleging that pressure was being exerted on the Commission to grant the license.
Pointing out that neither the farmers, farmers’ organisations, public representatives, nor the power sector unions had demanded a separate farmers’ discom, he claimed that there was also no cabinet sub-committee recommendation supporting such a move.
Harish Rao said there were growing suspicions that the state government was attempting to move the electricity sector towards privatisation through impractical policies.
He said the state government itself had admitted in GO No 44 that the existing discoms were facing financial stress due to the gap between the billing rates and the cost of service, which proved that the present proposal was financially motivated rather than being aimed at farmers’ welfare.
He also questioned whether the government was indirectly admitting that the current electricity supply system had failed by stating in the GO that the third discom was intended to “improve the electricity supply position of the state.”
Harish Rao expressed serious concerns over manpower shortages in the proposed discom. He said nearly 29 lakh agricultural consumers spread across 32 districts and 584 mandals would be managed with only 2,000 employees, including barely 1,000 field staff such as linemen and artisans.
He questioned how such limited staff could maintain 5.5 lakh transformers and 2.6 lakh km of LT lines.
He also pointed out that sub stations, 33 KV and 11 KV lines would remain under the existing discoms, creating coordination issues and operational risks for the proposed Rythu Discom.
Harish Rao questioned why services such as Mission Bhagiratha, lift irrigation schemes and municipal water supply schemes were included under the proposed farmers’ discom, if it was genuinely meant only for the agricultural consumers.
He claimed that nearly Rs 35,000 crore worth of outstanding dues, including the liabilities from lift irrigation projects, Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) and Mission Bhagiratha, were being shifted to the proposed new discom without any clarity on revenue generation.
He asked how employee salaries, pensions and retirement benefits would be paid under such circumstances.
He further objected to the lack of clarity regarding the Power Purchase Agreements and financial planning for the new discom. He criticised the state government for stating that the business plans and financial details would be submitted later.
Harish Rao warned that excluding industrial and commercial consumers from the cross-subsidy structure would place a huge financial burden on the state government, as the proposed Rythu Discom would largely serve non-revenue-generating agricultural consumers.
He also raised legal concerns under Section 43 of the Electricity Act, stating that a distribution licensee cannot refuse electricity connections within its jurisdiction, making the proposed operational structure legally questionable.
He alleged that after coming to power, the Congress government has pushed the power sector into uncertainty through unplanned decisions. He expressed concern that the proposal to create a third discom in the name of “Rythu Discom” has created fear and confusion among farmers and electricity consumers.
He urged the Commission to conduct public hearings across all districts of Telangana instead of limiting consultations to Hyderabad, as the decision would impact all sections of electricity consumers in the state.
