Hyderabad, Dec. 18 -- The Telangana government on Wednesday, December 17, ordered the formation of a third power distribution company in the state which will handle 29,08,138 connections.

As per Government Order (GO) number 44, the new company will begin operation from April 1, 2026. It will be dedicated to handling free power supply and other electricity schemes based on government subsidies.

According to the GO, the financial condition of the existing Telangana discoms has weakened over time due to a widening gap between the Average Billing Rate (ABR) and the Average Cost of Service (ACoS).

This situation has limited their capacity to raise funds for development works and restricted their participation in key infrastructure programme...