Telangana Unveils Bold Energy Reforms: New DISCOM, Solar Push, and Financial Overhaul to Power a Greener Future – EQ
In Short : Telangana CM Revanth Reddy has announced major energy reforms, including the creation of a third DISCOM dedicated to managing free electricity schemes. Existing DISCOMs will focus on commercial operations. The government will restructure high-interest loans, mandate solar installations in public buildings, and launch solar pump schemes for tribal farmers, aiming to modernize and financially stabilize the power sector.
In Detail : Telangana Chief Minister Revanth Reddy has announced a sweeping reform package for the state’s energy sector. A key move is the establishment of a third power distribution company (DISCOM) dedicated exclusively to handling free electricity schemes and government-subsidized power supply.
Currently, the state operates two DISCOMs—TGSPDCL and TGNPDCL—which manage both commercial and welfare electricity operations. Under the new plan, these existing DISCOMs will focus solely on commercial supply and revenue-based services.
The third DISCOM will be responsible for delivering free power to sectors such as agriculture, domestic households receiving subsidies, and public institutions like schools and colleges. This separation aims to improve operational efficiency and financial transparency.
To further stabilize the sector, the Chief Minister directed officials to restructure outstanding power sector loans. High-interest borrowings—some reaching 10%—will be renegotiated and refinanced at more sustainable rates around 6%, reducing the burden on DISCOMs.
As part of the reforms, all government buildings, including schools, colleges, offices, and the Secretariat, will be equipped with solar panels. Rooftop solar, solar fencing, and shaded solar parking areas will be developed to encourage green energy adoption in public infrastructure.
A major rural development initiative was also launched under the “Indira Solar Giri Jala Vikasam” scheme. The state plans to install solar-powered irrigation pump sets for 2.10 lakh tribal farmers to support cultivation on six lakh acres over three years.
These reforms are projected to significantly reduce the state’s annual ₹14,000 crore subsidy burden, while ensuring timely and targeted delivery of welfare schemes through the new DISCOM.
CM Revanth emphasized that energy reforms are critical for Telangana’s long-term sustainability and economic growth. He also reiterated the state’s commitment to renewable energy under the upcoming Clean & Green Energy Policy.
The reform measures aim to position Telangana as a national leader in energy efficiency, renewable adoption, and smart public utility governance, laying a foundation for next-generation infrastructure and rural empowerment.
