Telangana Budget 2026-27| Energy sector allocation remains same as demand on rise

The Telangana government has kept the allocation to energy sector for 2026-27 almost the same as compared to the ongoing fiscal concluding this month-end — ₹21,285 crore against ₹21,221 crore allocated for 2025-26.

According to the budget estimates presented to the Assembly on Friday by Deputy Chief Minister M. Bhatti Vikramarka, the allocation for 2026-27 includes ₹14,000 crore for subsidy with a lion’s share of it going to energise agricultural pump-sets free and some small amount to other categories such as small scale industries, handlooms and others. The allocation for subsidies was ₹11,500 crore for 2025-26.

For free power supply up to 200 units of energy every month to eligible households, an allocation of ₹2,080 crore is made. He explained how the power utilities have handled peak load of 18,228 megawatt on the transmission/distribution system and met energy demand of 344.4 million units (341.08 MU net) on March 13 (recently) without any interruption as the utilities have 23,187 MW installed capacity linked.

Besides, the allocation for 2026-27 includes ₹1,000 crore each assistance to Telangana Genco and Telangana Transco and another ₹1,000 crore each to green/new energy policy promotion and 100% solarisation of villages.

As part of the push being given to renewable/green energy projects, Mr. Vikramarka said the government was planning 11,460 MW capacity of pumped storage hydel other green generation units (other than solar). To ensure sustainable supply of energy it has plans to establish battery energy storage systems of 1,500 MWh capacity each at Maheshwaram and Chotuppal, to begin with.

The Deputy CM announced the establishment of the third Discom purely to handle agriculture and lift irrigation connections and it would start functioning from April.

Under Indira Soura Giri Jala Vikasam, the government has plans to provide solar pump-sets with 100% subsidy to 2.1 lakh tribal farmers and ₹600 crore allocation has been made in the budget for the purpose. The scheme would help tribal farmers take up plantation crops in about 6 lakh acres of ‘podu’ lands.

A pilot project is already being implemented in Achampet and after studying its modalities the government would replicate it across the State.

Budget Allocation to Energy Sector (₹ in crore)

(* Accounts)