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The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.

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Government defends Farmer Discom proposal
R. Ravikanth Reddy · 2026-05-30 · via The Hindu: Latest News today from India and the World, Breaking news, Top Headlines and Trending News Videos.

Telangana Rural Power Distribution Company Limited (TGRPDCL) Chairman and Managing Director Musharraf Ali Faruqui clarified that no metering would be introduced for agricultural consumers under the proposed Farmer Discom model.

Presenting the TGRPDCL case during discussions on the proposed Farmer Discom model, he argued that the existing Telangana discoms were under severe financial stress, with accumulated losses reaching ₹69,741 crore by FY 2025. Government departments alone reportedly owed ₹54,090 crore in outstanding arrears.

The proposal also highlighted operational inefficiencies, stating that Aggregate Technical and Commercial (AT&C) losses in Telangana stood at around 19.84% in FY 2025, significantly higher than the national average and neighbouring States. While Telangana recorded nearly 19.84% losses, Andhra Pradesh stood at 7.87%, Kerala at 6.61%, Karnataka at 11.92%, and Tamil Nadu at 10.96%.

According to the government, Telangana’s discoms currently hold a “C-minus” rating in the integrated performance rankings issued by the Union Ministry of Power. The new Discom was intended not to burden farmers, but to strengthen electricity distribution and improve operational efficiency.

According to the proposal, the TGRPDCL will establish two dedicated Consumer Grievance Redressal Forums (CGRFs) for agricultural consumers and focus specifically on improving electricity reliability, safety, and service quality for farmers.

Under the proposed TGRPDCL framework, subsidised consumer categories including agriculture, lift irrigation schemes, Mission Bhagiratha, Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB), and municipal water supply systems would come under a separate distribution structure.

Mr Musharaff said TGRPDCL was based on the “sectoral unbundling” principle and the model aims to ensure clear energy accounting, transparent identification of costs and losses, reduction of technical and commercial losses, and improvement in the overall financial performance and credit ratings of discoms.

Published - May 30, 2026 12:42 am IST