HYDERABAD: The newly approved third power distribution company (Discom) will commence operations with financial liabilities of Rs 35,982 crore, following a government decision to transfer a major share of loans and arrears to the new entity.
This includes loan liabilities of Rs 9,032 crore and generator payables of Rs 26,950 crore.
A large portion of arrears from Telangana Southern Power Distribution Company Limited and Telangana Northern Power Distribution Company Limited will be shifted to the third Discom. As of July 2025, the combined arrears of the two Discoms stood at 45,398 crore, of which `35,982 crore will be transferred.
The new Discom is scheduled to begin operations from April 1.
Orders approving the formation of the third Discom were issued on Wednesday by Energy Department Principal Secretary Navin Mittal.
The jurisdiction of the new entity will cover the entire state, with responsibility for power supply to agriculture, lift irrigation schemes, Mission Bhagiratha, Hyderabad Metropolitan Water Supply and Sewerage Board, and municipal water connections. About 29,08,138 connections will be shifted.
Assets valued at Rs 4,929 crore and around 2,000 staff, including 660 engineers, 1,000 operations and maintenance staff and artisans, and 340 administrative staff, will be transferred.
The stated objective is to reduce losses and debt of the existing Discoms and improve access to funding and infrastructure programmes.
Existing PPAs with TGGENCO, CGS, IPPs, inter-state solar and inter-state hydel projects will be split in the ratio of energy requirement.
