Telangana to get third discom for welfare; Cabinet approves thermal power expansion, sports school

Hyderabad: A Third discom for government and welfare connections has been decided by the Telangana Cabinet to restructure the energy sector along with the infrastructure development in the State.

The Cabinet meeting held on Tuesday under the chairmanship of Chief Minister A Revanth Reddy and his ministers took decisions on energy, urban and infrastructure development of the state.

Here’s a look at the topics discussed:

1. Comprehensive power sector restructuring

The Cabinet gave its nod to major power sector reforms, focusing on managing debt, catering to social schemes and boosting generation capacity through renewable and captive sources.

- Formation of third discom: A new, third Distribution Company (DISCOM) will be created alongside the existing NPDCL and SPDCL.

- Welfare connections: All government-subsidised connections—including agriculture connections, lift-irrigation schemes, Mission Bhagiratha, safe drinking water schemes and HMWSSB power connections—will be shifted under the purview of this new discom.

- Renewable energy push (3,000 MW Solar): Following a comprehensive review of long-term power demand, the Cabinet decided to float tenders for the purchase of 3,000 MW of solar power to meet Renewable Energy Obligations (RPOs). These will be structured as 5-year supply contracts.

- Pumped storage development (Up to 10,000 MW): Tenders will be floated for the purchase of 2,000 MW of pumped-storage power on a 5-year contract basis.

The state will allow companies to set up pumped-storage plants up to a total capacity of 10,000 MW.

- Incentives: The government will provide land and water to interested companies, with the crucial condition that the power produced must be sold first to Telangana Discoms under a prior agreement.

2. Captive power generation

Under the Clean and Green Energy Policy, to attract new industries, companies will be allowed to set up their own captive power generation units without any capacity limits. Applications for captive power generation will receive immediate approval. Existing industries will continue with their current power supply arrangements.

- Thermal power expansion: The proposed 800 MW unit at Ramagundam Thermal Power Station (TPS) will be taken up by the National Thermal Power Corporation (NTPC).

Feasibility studies will be conducted for setting up new NTPC-run power plants at Palvancha and Makthal.

Officials were directed to conduct a detailed cost comparison between NTPC execution and Genco execution before providing final approval for these projects.

3. Education, Sports and Skill Development

The Cabinet sanctioned land allocations to strengthen social welfare and skill infrastructure.

- Integrated residential school: As much as 20.28 acres of government land were allotted in Pedda Nallabelli village, Dummu Gudem Mandal, Bhadradri Kothagudem district for the construction of an SC, ST and BC Integrated Residential School.

- Sports school: As many as 40 acres of government land were allotted in Jaggannapeta village, Mulugu mandal, Mulugu district, for establishing a new sports school.