The Vidyut Vinyogadarula Ikya Vedika has issued a stern warning to the Andhra Pradesh state government, demanding the immediate clearance of all pending subsidy arrears and unpaid electricity bills owed to power distribution companies (DISCOMs). The forum cautions that continued delays are pushing the state's power utilities towards a severe financial breakdown.
Mounting Dues: A Ticking Time Bomb
The financial burden on DISCOMs has reached alarming proportions. According to the forum's convenor, MV Anjaneyulu, the total outstanding arrears combine massive subsidy dues and unpaid electricity bills. The situation stems from a written assurance given by the state government to the Andhra Pradesh Electricity Regulatory Commission (APERC) in March 2023. Based on this promise to pay subsidies for 2023–24, the APERC finalized the tariff for that year.
However, the government failed to honor its commitment. Subsidy arrears ballooned to Rs 11,476.52 crore by March 2024 and escalated further to Rs 12,921.93 crore by March 2025. As of September 2025, these arrears remained critically high at Rs 12,718.68 crore, with expectations of a further rise by March 2026.
Who Owes the Money? A Breakdown of Defaulters
The crisis is compounded by staggering electricity bill arrears, which stood at Rs 15,137.53 crore as of March 31, 2025. Addressing media persons on Tuesday, Anjaneyulu provided a detailed breakdown of the defaulters:
- Government Departments: Account for Rs 4,861.76 crore (32.12%)
- Local Bodies: Owe Rs 3,305.50 crore (21.84%)
- Private Entities: Responsible for Rs 6,288.37 crore (41.54%)
He emphasized that arrears from government departments and local bodies together constitute nearly 54 percent of the total outstanding amount, highlighting a significant failure within the state's own machinery.
Skepticism Over New Announcements
The forum expressed deep skepticism regarding the state government's recent announcement to bear Rs 4,497.89 crore related to the fourth control period from 2019–20 to 2023–24. While welcoming the move, Anjaneyulu pointed out that given the track record of mounting subsidy arrears and the huge unpaid bills of its own departments and local bodies, there are serious doubts about whether this promised amount will be paid on time.
The Vedika's warning underscores a critical juncture for Andhra Pradesh's power sector. The combined financial strain of over Rs 27,856 crore in total arrears threatens the operational viability of DISCOMs, which could ultimately impact power supply and stability across the state. The forum's demand places urgent pressure on the government to translate assurances into concrete financial action to avert a deeper crisis.
