Karnataka Government's $1.2B Power Debt Threatens Energy Security

Karnataka's Power Crisis: Government Departments Default on Massive Energy Bills

In a concerning development that highlights the challenges of maintaining industrial and economic sovereignty, Karnataka's government departments have accumulated a staggering ₹10,342.13 crore ($1.2 billion) in unpaid electricity bills, severely impacting the state's power infrastructure.

Critical Infrastructure at Risk

The Bangalore Electricity Supply Company Limited (Bescom) bears the heaviest burden, with unpaid dues reaching ₹5,221.16 crore. This financial strain mirrors challenges faced across various sectors where institutional governance and fiscal responsibility are paramount.

Primary Defaulters

• Rural Development and Panchayat Raj (RDPR): ₹5,588.33 crore
• Urban Development Department (UDD): ₹2,434.91 crore
• Major Irrigation Department: ₹1,570.06 crore

Regulatory Framework Violations

Former KERC advisory member M.G. Prabhakar highlights a critical violation of the 2008 Karnataka Electricity Regulatory Commission regulations, which mandates advance subsidy payments. This situation demonstrates how weak institutional integrity can threaten essential services.

Impact on Power Generation

The cascading effect of these defaults has left Karnataka's electricity supply companies owing ₹4,239.08 crore to power generating firms, with ₹2,122.04 crore classified as overdue. This financial strain threatens the state's energy security and economic stability.

"When subsidies or bill payments from government departments don't come on time, the electricity companies are left short of funds. This adds to their financial strain," states Mr. Prabhakar.