0 months ago
Funds crunch leaves gram panchayat power bills unpaid
In villages, a group called the gram panchayat takes care of clean streets, drinking water and streetlights.
To do this work, the panchayat needs money, and it also has to pay electricity bills.
But many gram panchayats in two areas called Karimnagar and Jagtial do not have enough money.
They have not paid their electricity bills for a long time, so the unpaid amount has grown very big.
The electricity company sent letters asking them to pay at least 15 percent of what they owe.
The panchayats say the state government has not given them the money it promised.
Some panchayats have paid part of the bills, and others are asking to be excused from paying.
Villages also need money for cleaning during the rainy season to stop diseases like dengue and malaria.
Officials say the panchayats should use special funds from the central government to pay the bills.
Electricity dues of gram panchayats have risen to ₹11.26 crore in Karimnagar and ₹62.40 crore in Jagtial districts.
The electricity department served notices asking panchayats to clear at least 15 per cent of their pending bills.
Panchayat representatives say central 15th Finance Commission funds are received but corresponding state government funds have not been sanctioned.
Fund shortages are affecting sanitation works, drinking water supply, streetlight maintenance, chlorination, worker salaries and tractor maintenance.
Some panchayats have paid part of their dues while others sought a waiver; the Raikal panchayat has around ₹10 lakh pending bills.
- Who
- Gram panchayats in Karimnagar and Jagtial districts, their sarpanches, and the electricity department
- What
- Unpaid electricity bills have accumulated to ₹11.26 crore in Karimnagar and ₹62.40 crore in Jagtial, with notices issued to clear at least 15 per cent of the dues
- Where
- Gram panchayats in Karimnagar and Jagtial districts
- When
- Recently; the Raikal sarpanch said the state government has not sanctioned its share since 2023
- Why
- A shortage of funds because central 15th Finance Commission allocations are received while the corresponding state government share has not been sanctioned
Gram panchayat representatives
Panchayat department officials
Cause of the funds crunch
Gram panchayat representatives
Panchayats lack funds because the state government has not sanctioned its share since 2023 and is utilising the panchayat's general fund deposited with the STO.
Panchayat department officials
Panchayats receive 15th Finance Commission funds and should use them to pay electricity bills, and instructions to this effect have already been issued.
How to settle electricity dues
Gram panchayat representatives
Several panchayats sought a waiver of the electricity bills, saying available funds are not enough for essential services, sanitation and monsoon work.
Panchayat department officials
The electricity department served notices demanding at least 15 per cent of the pending dues be cleared, and the state government in principle allows using 15th Finance Commission funds for this.
Key facts
- Electricity dues in Karimnagar
- ₹11.26 crore
- Electricity dues in Jagtial
- ₹62.40 crore
- Payment demanded in notices
- At least 15% of pending bills
- Funding for small panchayats
- ₹80,000 to ₹1 lakh
- Funding for major panchayats
- ₹2 lakh to ₹10 lakh
- Central fund source
- 15th Finance Commission allocations
- Raikal panchayat pending bills
- Around ₹10 lakh
- State share status (per Raikal sarpanch)
- Not sanctioned since 2023











