The One-Time Settlement for Arrears Clearance plan is set to ease the financial burden on government departments and public utilities in Telangana. The state government approved the proposal to clear long-pending dues owed to the Water Board and electricity utilities. The move will help departments settle large outstanding bills and improve financial management.
Under the One-Time Settlement for Arrears Clearance scheme, the Cabinet allowed a waiver of interest and penalties on pending payments owed to the water board. Officials said several government departments together owe about ₹5,864 crore to the board. With the removal of penalties and interest, the payable amount may fall to around ₹1,686 crore.
Mission Bhagiratha alone has nearly ₹5,000 crore in pending electricity payments. The government plans to adjust this amount through internal accounting between departments.
Village panchayats also owe around ₹500 crore in electricity dues for the 2025–26 financial year. Officials believe the settlement plan will help clear old bills and strengthen the finances of public utilities.
