Recently, the Telangana High Court quashed the Centre’s order directing the State government to pay around ₹6,750 crore power dues to Andhra Pradesh, which has come as a major relief to the administration.
A batch of writ petitions were filed challenging the Union government’s order of August 29, 2022. The High Court gave liberty to the parties (the two State governments) to take recourse to remedy available in law.
The dispute over payment of power dues between the two States has been pending for a long time. The Andhra Pradesh government argued that Telangana should pay ₹3,441.78 crore in principal and ₹3,315.14 crore late payment surcharge for the power supplied to it post bifurcation. The Telangana government, on its part, has been claiming that its power utilities should get around ₹17,828 crore from the neighbouring State.