Emprising revival of Telangana power sector: Analysis from an Indian state

• Published date: 01 February 2021
• Author: Shameem P. Mohammed,Krishna Reddy Chittedi
• Date: 01 February 2021
• DOI: http://doi.org/10.1002/pa.2158

ACADEMIC PAPER

Emprising revival of Telangana power sector:

Analysis from an Indian state

Shameem P. Mohammed|Krishna Reddy Chittedi

School of Economics, University of Hyderabad,

Hyderabad, India

Correspondence

Krishna Reddy Chittedi, School of Economics,

University of Hyderabad, Hyderabad 500046,

India.

Email: krc@uohyd.ac.in

The paper discusses the new 24-hr power supply to agricultural sector scheme of

Telangana state in India. The first of its kind scheme that is fully funded by the state

government set a new example for agrarian states in India. The paper explains the

energy demand and supply management, fiscal and infrastructural preparedness of

the scheme along with environmental concerns. The primary survey report from two

villages testifies people's aspirations about the new scheme. Rational power con-

sumption by farmers is identified as key factor of this scheme that will enable govern-

ment to overcome challenges on sustainability of the scheme.

1|INTRODUCTION

Energy is a pervasive element in the process of development for all

countries where the levels of economic activity, population, and tech-

nology determine its magnitude. Country's energy needs and priority

changes with the different stages of economic development it

achieves. Countries like India where identification of such stages of

development is imprecise are difficult for the formulation of energy

policies that involves the development of interrelated policies at dif-

ferent levels. Central and state governments jointly endeavor the

development objectives of power sector in India. Rural agrarian

households are still the target for many of the energy policies in India.

Electrification targets and modernization of agricultural production

system are the foundation for these policies. Telangana as a newly

formed state in India was equipped with a trailing power sector.

Beyond the additional energy demands of a new state, Telangana was

managing with 4–8 hr of load relief to domestic and otherconsumers

and 2-day power holiday to industries. With a rural population of

213.95 lakh (61.1% of total population) in which 40% of households

(26.5%—self-employed and 12.5% agricultural labor households) are

directly employed in agricultural sector, the energy policies focusing

on them are critical in the process of development of the state.

The year 2018 started with the joy of having free power to rural

agrarian households in Telangana. The much-awaited scheme of

24 ×7 free electricity to farmers was started on new year eve. The

new year gift by the state government calls for deep analysis regard-

ing fiscal and energy sustainability of this “first in the country”

scheme. The scheme came into action far before the implementation

of another much-celebrated project of central government,

“Saubagya”that was planned to ensure free electricity to rural house-

holds launched in September 2017. The new free electricity scheme

in Telanganathatstartedfrom January1,2018at00.01 hr aimsat

24 ×7 power supply to 23 lakh agricultural connections in the state.

The state was facing severe power crisis since its formation in 2014

with a deficit of about 2,700 MW. The first experience of this govern-

ment's “magical”steps for the energy crisis came within 6 months by

successfully providing24 ×7 power supply to domestic connections

and ensuring electricity supply to farmers from 7 to 9 hr (initiated

from April 1, 2016 onward). The next mark of progress in this sector

was by successfully supplying quality power—free of cost for 24 hr to

the agriculture sector. Telangana has become the only state in the

country to achieve this rare distinction in the power sector to end the

despair of farmers. The new scheme needs attention as it is just about

three and half years after the state formation the government was

able to provide additional 9,500 MW to agricultural sector for free.

The study will bring the discussion on this new scheme by an

Indian state in energy management for the first time to the literature.

The successful implementation with cohesive evaluation on sustain-

ability in fiscal and energy terms of the scheme will be critical as the

potential success can be a model for other agrarian states.

2|REVIEW OF LITERATURE

The causality between energy consumption and economic growth in

India is established by various studies. Sajal (2002) explained that

Received: 6 April 2020Accepted: 18 April 2020

DOI: 10.1002/pa.2158

J Public Affairs. 2021;21:e2158.wileyonlinelibrary.com/journal/pa© 2020 John Wiley & Sons, Ltd1of6

https://doi.org/10.1002/pa.2158