The Telangana Government has issued an order for the formation of a Third DISCOM, which is targeted to begin operations from 1 April 2026. The new distribution company will exclusively handle agricultural and water supply connections across the state.
According to the government order, 29,08,138 connections will be transferred to the Third DISCOM. The distribution includes 29,05,779 agriculture connections, 489 Lift Irrigation Schemes, 99 HMWSSB connections, 1,132 CPWS and Mission Bhagiratha connections, and 639 municipal water connections under the LT VI-B category.
The new entity will take over 5,22,479 agricultural distribution transformers (DTRs) with a total capacity of 19,088 MVA. Additionally, 2,61,240 kilometers of agricultural LT lines will be shifted to the Third DISCOM.
The total asset value being transferred amounts to approximately ₹4,929 crore. This includes ₹2,792 crore worth of DTRs and ₹2,137 crore worth of LT lines.
In a significant modernization initiative, smart meters will be installed on all agricultural DTRs at an estimated cost of ₹1,306 crore. Each DTR will be metered at a cost of ₹25,000, covering all 5,22,479 DTRs.
Power Purchase Agreements (PPAs) will be reallocated among the three DISCOMs based on the last five years’ energy consumption patterns. The Third DISCOM will receive 42 percent share (1,56,775 MU), while SPDCL will get 45 percent (1,70,034 MU) and NPDCL will receive 13 percent (49,720 MU).
Outstanding arrears totaling ₹35,982 crore will be transferred to the Third DISCOM. This includes ₹22,926 crore from Lift Irrigation, ₹7,084 crore from HMWSSB, and ₹5,972 crore from Mission Bhagiratha.
The new DISCOM will also take over ₹26,950 crore in GENCO payables and ₹9,032 crore in loans.
To operate the new distribution company, 2,000 employees will be deployed. The workforce will comprise 660 engineers, 1,000 operations and maintenance staff and artisans, and 340 administrative staff members.
