Telangana not to pay 1200 Crore Power dues to AP!

Telangana government is likely to skip the power dues of about 1200 Crore to Andhra Pradesh. It is said that Telangana Chief Minister K Chandrasekhar Rao is of the opinion it is better to stop taking power from Andhra Pradesh. In the process they can skip the dues of Andhra Pradesh.

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The government had asked its power utilities to prepare a report if they can manage the power deficit due to this decision by purchasing power from outside sources. However this decision may totally hamper the financial position of AP power utilities and may become a new controversy between both the states.

According to Andhra Pradesh Reorganization Act, the power generated in the units of united AP should be shared by the two states in the ratio of 53.89 (Telangana) to 43.11 (AP). One year after the bifurcation, AP claims that Telangana owes 1200 Crores as Power dues for AP Genco. While Telangana Genco says that AP has exaggerated the dues and it only owes around 300-400 Crores.