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BRS Leader Harish Rao Challenges Third Power Distribution Company Proposal

May 27, 2026
BRS Leader Harish Rao Challenges Third Power Distribution Company Proposal
BRS Leader Harish Rao Challenges Third Power Distribution Company Proposal

Hyderabad: The Telangana government's initiative to create a third power distribution company faces significant opposition from BRS (Bharat Rashtra Samithi) leader and former minister Harish Rao, who has formally petitioned the Telangana Electricity Regulatory Commission to reject the proposal.

In a communication filed with the TGERC this week, Rao objected to the proposed "Rythu Discom" and flagged grave concerns regarding its financial viability and administrative feasibility.

The former minister traced electricity's centrality to Telangana's political identity, noting it stood alongside water resources, financial allocations, and employment opportunities as foundational issues during the statehood movement. He referenced the Basheerbagh shooting that occurred during power sector reforms in the undivided Andhra Pradesh era, and highlighted how K. Chandrasekhar Rao had stepped down as Deputy Speaker to protest electricity policies harming the farming community, subsequently catalysing the second phase of the Telangana movement.

Strengthening Power Infrastructure Under Previous Administration

Rao contended that the BRS administration substantially invested in and reinforced the power sector following Telangana's formation in 2014. He emphasised that Telangana pioneered providing unrestricted free electricity to farmers beginning January 1, 2018—a policy he credited with enabling the state to become a major paddy-producing region.

By contrast, Rao charged that the incumbent Congress government has introduced uncertainty into the power sector through hasty and ill-conceived measures.

The BRS leader asserted that the proposed third distribution company has triggered apprehension among both farming communities and ordinary electricity consumers. He further contended that the government is pursuing privatisation covertly through impractical initiatives.

Questions Raised Over Implementation Timeline

Rao questioned the government's announcement of June 2 as the operational commencement date for the Rythu Discom, particularly given that public consultation processes remained incomplete. He additionally alleged that the administration is pressuring the regulatory authority to expedite licence approval.

According to Rao's assessment, neither agricultural stakeholders nor existing power utilities have expressed demand for a dedicated farmers' distribution company. He also noted that no cabinet-level sub-committee had endorsed such a proposal.

The former minister pointed to Government Order No. 44, which he said itself acknowledges financial strain in the existing distribution companies stemming from the disparity between tariffs charged and operational expenses. He questioned whether this acknowledgment effectively constituted an indirect admission of systemic failure in electricity delivery.

Demands for Broader Consultation

Rao criticised the government for circumventing extensive public engagement and legislative debate on the matter. He called upon the Telangana Electricity Regulatory Commission to organise public hearings across all districts rather than confining discussions to Hyderabad, thereby ensuring broader stakeholder participation in the decision-making process.

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