Telangana Launches Major Power Sector Reforms — New DISCOM, Solar Push & Financial Restructuring

INDIA

Telangana’s Chief Minister A. Revanth Reddy unveiled a sweeping set of energy reforms aimed at improving efficiency, reducing costs, and accelerating clean energy adoption in the state:

🔷 1. New DISCOM for Welfare Electricity Schemes

  • A third power distribution company (DISCOM) will be created to manage all state-funded electricity initiatives such as:
    • 24×7 free power for farmers
    • 200 units free electricity per month for low-income households
    • Free electricity for government schools and colleges
  • This dedicated DISCOM will take strain off the existing Southern and Northern distribution companies and streamline subsidy delivery across Telangana

🔷 2. Power Utilities Financial Overhaul

  • To relieve DSIMCOMs of heavy financial burdens, officials were instructed to restructure high-interest loans (some with ~10% interest) to more reasonable terms (approx. 6%).
  • This is expected to strengthen DISCOM finances, improve credit ratings, and support long-term sustainability.

🔷 3. Solar Integration Across Government Buildings

  • A state-wide solar rollout is being mandated:
    • Rooftop solar installations for schools, colleges, secretariat offices, and other public infrastructure
    • District Collectors have been directed to identify viable buildings for immediate setup of solar panels and solar-powered parking solutions.

🔷 4. Tribal Livelihood Scheme: Indira Solar Giri Jala Vikasam

  • This flagship initiative allocates ₹12,600 crore over five years (2025–29) to provide solar pump sets for drip irrigation, intercropping, and land development on about six lakh acres of tribal land, benefiting around 2.1 lakh tribal farmers.

📋 Summary Table

Reform Area
Core Initiative

New DISCOM

Manages free power schemes separately from existing utilities

Financial Restructuring

Loan refinances to lower interest rates for DISCOMs

Solar Deployment

Rooftop and infrastructure solar installations across government buildings

Tribal Solar Scheme

₹12,600 Cr program to solar-power irrigation for tribal farmers

✅ Bottom Line

With proactive measures—from a specialized DISCOM and restructuring fuel costs to scaling solar across government facilities and expanding solar irrigation for tribal farmers—Telangana is ushering in a greener, more financially sustainable and inclusive energy future.