The electricity generating company of Andhra Pradesh, AP Genco, has dragged distribution companies of Telangana to the National Company Law Tribunal here, seeking dues of over ₹5,700 crore.

AP Genco CMD K Vijayanand had moved two petitions against Telangana State Southern Power Distribution Company Limited and Telangana State Northern Power Distribution Company Limited, seeking total dues of ₹5,732 crore.

Responding to the notice, the Telangana utilities contended that the NCLT did not have jurisdiction over the matter, as they were governed by the Electricity Act, 2003. They said that as service oriented and non-profit organisations, they could not be equated to commercial outfits.

At the time of the bifurcation, power supply was distributed in the 53.89-46.11 ratio to Telangana and AP, respectively. AP generates more power.

The Telangana utilities said that post the bifurcation, disputes have arisen between the generation and distribution companies of AP and Telangana over amounts due to each other. This issue was before an expert committee looking into bifurcation issues.

The Telangana utilities contended that the AP Genco application was frivolous and that it needed to be dismissed with costs.

The petitioner, AP Genco, countered saying the the IBC did not discriminate between a government and a private company. Its intent was to provide time-bound settlement of insolvency issues and to facilitate a faster and better debt recovery.

The purpose of the State Electricity Regulatory Commission, it claimed, was to resolve tariff related issues and that there was no dispute over the tariff or the outstanding amounts.

The matter has been posted for July 2.

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