Telangana Energy sector gets boost with nearly 30% hike in 2025-26 budget allocation

HYDERABAD

With nearly 30% enhancement in the budget allocation for the energy sector in 2025-26 compared to the financial year 2024-25 (₹16,398 crore), the allocation of ₹21,221 crore is expected to give momentum to the Telangana government to implement its plans to expand the renewable energy (RE) base as part of its mission to develop an additional 20,000 megawatt RE capacity by 2030.

The allocation includes ₹19,590 crore for various schemes and capital expenditure. In addition, another ₹3,000 crore was allocated to the Gruha Jyothi scheme, under which 50 lakh below poverty line households and another 30,000 government educational institutions would be provided free power supply up to 200 units a month.

It also provides ₹1,000 crore for green energy and promotion of new energy and another ₹1,500 for 100% solarisation of villages now taken up in two villages on pilot basis — Chief Minister A. Revanth Reddy’s native village Kondareddypalli and Siripuram village in the Deputy Chief Minister’s Madhira constituency.

A lion’s share of the allocation (₹11,500 crore) goes for subsidies — to provide 24×7 free power to agricultural pump sets and some other social sectors such as weavers, hair saloons and others and to industries. While presenting the Budget, Deputy Chief Minister M. Bhatti Vikramarka, who handles the portfolio of Energy too, said the government would set up a 250 MW/500 MHz battery energy storage system near Shankarpally.

As part of strategic efforts to diversify the State’s renewable energy sources, Singareni Collieries Company Ltd and Telangana Renewable Energy Development Corporation were jointly working on geo-thermal power generation. Two units of the 5×800 MW Yadadri Thermal power station were already into the in-firm power generation process and the project would be fully operational by May-end.

Farm sector

Meanwhile, the agriculture sector too got fair allocation of ₹24,439 crore and animal husbandry department another ₹1,674 crore. The allocation to farm sector includes ₹18,000 crore for Rythu Bharosa, investment support of ₹6,000 per acre for two season a year, ₹1,800 crore for bonus to fine varieties of paddy at ₹500 per quintal and ₹1,589 crore for Rythu Bima, ₹5 lakh life insurance cover to landholding farmers in the event of their death, irrespective of the cause.