Power dues to AP: Telangana HC restrains Centre from taking coercive measures against state

Union Power minister had revealed that consultations were made with Law and Finance departments to direct RBI to debit the amount owed to AP govt from the accounts of TS govt.
Power dues to AP: Telangana HC restrains Centre from taking coercive measures against state
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HYDERABAD: The Telangana High Court issued a significant directive on Tuesday, instructing the Union government not to enforce any coercive measures against Telangana State and its power utility companies for alleged dues of around Rs 6,757 crore owed to Andhra Pradesh power discoms (distribution companies).

This development emerged following statements made by the Union Minister for Energy and Power, Raj Kumar Singh, during the Question Hour in Rajya Sabha on August 1. In response, the Telangana government filed an Interim Application with the Telangana High Court, seeking its intervention in the matter.

In light of questions raised by AP Rajya Sabha members Vijayasai Reddy and GVL Narasimha Rao, RK Singh revealed that consultations with the Law and Finance departments had taken place within the ministry. The objective was to direct the Reserve Bank of India (RBI) to debit the amount owed to the Government of Andhra Pradesh from the accounts of the Government of Telangana.

Apprehensive about possible actions that might be taken against them, the Telangana government approached the high court on Tuesday, requesting an extension of the existing stay orders. These orders had previously been issued to prevent the Union government from initiating any coercive action.

Hearing on Aug 24

In response to Telangana government’s appeal, a division bench led by Chief Justice Alok Aradhe and Justice T Vinod Kumar issued a directive to the Union government to restrain from implementing coercive measures temporarily.

The bench also assured that a hearing would take place on August 24 to address the claims presented by the power utilities of AP and Telangana. The judges also said that they aim to reach a decision on the matter on the same day.

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