States Emulate Telangana’s Rythu Discom Model
Hyderabad: The Telangana government’s move to create a separate distribution company (discom) for farmers, scrap irrigation projects and streamline the power sector is being emulated by the BJP and NDA-ruled states.
Andhra Pradesh, Haryana and Maharashtra have announced agriculture-focused power distribution companies for farmers, emulating Telangana’s Rythu Power Distribution Company Limited (TGRPDCL, Rythu Discom). These initiatives are aimed at ensuring a reliable power supply in the face of heavy subsidies straining existing utilities, restructuring financially burdened discos by sequestering huge farm subsidies, and following Telangana’s set plan to clear debts of Rs 71,964 million.
This debt transfer, designed to insulate agricultural energy costs, includes government office dues amounting to Rs 35.982 billion; Power purchase liability of Rs 26,950 crore; and outstanding loans: Rs 9,032 crore.
Discoms have long been reeling under the burden of subsidies, their operations hit by debt that diverts resources away from innovation and reliability. Musharraf Faruqui, chairman and managing director of the new entity, said the establishment of Rythu Discom, conceived by Chief Minister A. Revanth Reddy, has helped streamline agricultural energy supply, pave the way for sustainable energy, better target subsidies and improve fiscal discipline in distribution operations.
Rythu Discom has already received approval from the Union ministry of corporate affaris and has applied for distribution license from Telangana Electricity Regulatory Commission. A public hearing is scheduled for May 28. Telangana’s TGRPDCL is expected to become fully operational from June 2 and liabilities of Rs 35,982 crore, including dues and loans from TGSPDCL and TGNPDCL, will be met, with priority given to efficient farm power management.
A senior Telangana power sector official explained the importance of segregation of services: “Segregation of agricultural energy subsidies into a dedicated disco avoids cross-subsidy burdens on industrial and domestic consumers, stabilizes utility finances and enables targeted efficiency improvements in rural supply chains without compromising overall grid sustainability.”
Haryana has proposed Haryana Agri Discom in the 2026-27 budget to manage all 5,084 agri-feeders and serve 7.17 lakh farm consumers, ensuring faster tubewell connections, transformer replacements and uninterrupted supply. This will be the third disco along with Uttar Haryana Bijli Vitran Nigam and Dakshin Haryana Bijli Vitran Nigam.
Maharashtra is transferring agricultural supply from debt-laden Maharashtra State Electricity Distribution Company Limited (MSEDCL) to MSEB Solar Agro Power Limited (MSAPL) by March 2027 and transferring debts of around Rs 96,000 crore to farm dues to improve the financial position of the parent company ahead of the IPO.
Neighboring Andhra Pradesh is setting up Andhra Pradesh Rural Agricultural Power Supply Limited to manage over 26 lakh agricultural connections and facilitate free electricity distribution to farmers.
These developments signal a clear reformist policy trend, with states increasingly adopting the Telangana model to improve operational efficiency, ensure transparent subsidy management and strengthen the financial sustainability of power distribution services. All four states aim to decouple subsidized farm loads from commercial and domestic users, reduce cross-subsidies and improve rural energy efficiency, similar to Rythu Discom in Telangana.
Comparison of Farmer Subsidies
STATE BENEFICIARY ASSISTANCE
Haryana 7.17 lakh Rupees 7,870 cr
Maharashtra 44 lakh Rs 4,761 cr
Andhra Pradesh 26 lakh Rs 7,241 cr
Telangana 29.08 lakh Rupees 15,946 cr
