One of the most serious concerns highlighted by industry stakeholders is the sudden implementation of the unblocking of Lead kVArh, which has resulted in a severe and unexpected power cost shock for commercial and industrial consumers
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Leading industrial, trade, and commerce associations have asked the Telangana government to reconsider the implementation of a few decisions that could lead to a sharp increase in power costs and cause operational issues. They alleged that investments in renewable energy have been stalled due to delays in the issuance of No-Objection Certificates (NOCs) and other roadblocks.
They called for the restoration of the earlier night-time-of-day (ToD) concession of ₹1.50 per unit, or a higher concession on the daytime tariff, considering the availability of cheaper solar power. They also sought more time, awareness, and a phased transition for the implementation of Lead kVArh billing.
They also want the State government to put on hold the controversial Hyderabad Industrial Lands Transformation (HILT) Policy that sought to streamline land use within the ORR (Outer Ring Road).
In a rare show of solidarity, top industry and business associations, including the Federation of Telangana Chambers of Commerce and Industry (FTCCI), Telangana Industrialists Federation (TIF), Telangana Iron and Steel Manufacturers Association (TISMA), and Telangana State Tool Manufacturers Association (TSTMA), voiced their concerns here on Wednesday.
Spokespersons from 10 industrial bodies with a combined membership exceeding 50,000 units felt that while urban planning is necessary, industries cannot be relocated as residences are.
Power problems
One of the most serious concerns highlighted by industry stakeholders is the sudden implementation of the unblocking of Lead kVArh, which has resulted in a severe and unexpected power cost shock for commercial and industrial consumers.
By unblocking lead kVArh, Discoms are now charging consumers for reactive power that they are actually injecting into the grid.
“This sudden shift has caused electricity bills to increase manifold, in several cases by three to five times, severely impacting industrial operations and cost competitiveness,” they said.
With the present change, DISCOMs are penalising both categories of consumers — those drawing reactive power from the grid and those supplying reactive power into the grid— thereby defeating the core objective of reactive power.
They asked the government to set up an expert committee with representatives from the industry, reputed technical institutions such as IITs and JNTUs, DISCOMS and other stakeholders to comprehensively evaluate the current reactive power requirements of the grid.
Published on December 24, 2025