AP tells TS to clear power dues of Rs 3,441.78 crore to avoid late payment charges
Nearly Rs 43 crore is being levied per month as late- fee charges on the principal amount of power dues of Rs 3441.78 crore. (PTI Photo)
VIJAYAWADA: Andhra Pradesh has petitioned the Telangana government to clear the latter’s power dues to AP worth Rs 3,441.78 crore. It said there was inordinate delay on the part of the TS in clearing the dues and this resulted in the mounting of the dues to nearly Rs 4,000 crore in the last seven years.
The AP Genco authorities say there existed no dispute vis-à-vis the principal amount in the dues of Rs 3,441.78 crore the TS Discoms owed it. Top officials from both AP Genco and TS Discoms had signed an agreement and, on this basis, the TS Discoms must pay the principal amount to AP Genco immediately, it was pointed out.
The AP Genco noted that, as a 15 per cent annual interest rate is being levied on the principal due amount of Rs 3,441.78 crore, the late payment charges have gone up to nearly Rs 4,000 crore by now. The more the delay in paying the principal amount, the more late payment charge and this would cause more of a financial burden on the TS government, AP Genco said.
Moreover, AP Genco referred to the loan it raised from the Power Finance Corporation and the Rural Electrification Corporation to generate power and supply it to TS Discoms. For this, AP Genco has to pay a monthly compound interest at the rate of 11.5 per cent to its financiers.
“If the TS government clears its power dues, at least the principal amount, this would be of immense help to us to clear our dues to the financiers,” AP Genco said.
Meanwhile, the hearing on power dues from TS Discoms to AP Genco has been deferred at the Telangana High Court due to paucity of time though the matter was listed thrice in the first week of Jan, 2023.
