Summary of this article
The Telangana government has approved a 1.6 per cent DA hike for power sector employees and pensioners.
The rates are hiked from 17.65 per cent to 19.27 per cent.
The rate will apply with retrospective effect from January 1, 2026.
The Telangana Deputy Chief Minister and Energy Minister, Mallu Bhatti Vikramarka, has approved and announced a revision in the dearness allowance (DA) for employees, including artisans, and pensioners within the power sector.
Following a review meeting at the headquarters of the Telangana State Power Generation Corporation (GENCO) on June 17, 2026, the minister announced the decision to increase the DA by 1.621 per cent. This would mean the DA hike from the existing 17.651 per cent to 19.272 per cent.
The hike will be applicable with retrospective effect from January 1, 2026. According to the government, this would provide much-needed relief to the electricity department staff and help them cope with rising inflation and household expenses.
The government aims to protect the purchasing power of its employees by ensuring that compensation keeps pace with rising living costs.
While this hike will benefit more than 70,000 (70,804) employees and pensioners across various power utilities under the energy department, the government also acknowledges that this measure will cost approximately Rs 9.35 crore of additional expenditure per month on the state exchequer. The hike is a fiscal commitment that the government has to fulfil every year. Per the media reports, the overall financial implication is projected to exceed Rs 112 crore.
Considering the financial implications of the hike on the state and the financial cushion to the employees and pensioners, the deputy CM also outlined a 10-year infrastructure vision for Telangana’s power sector. He took the long-term view beyond the immediate financial considerations.
During the meeting, he directed officials from the Southern Power Distribution Company, the Northern Power Distribution Company, and the Transmission Corporation of Telangana to draft a comprehensive long-term plan to ensure meeting rapidly growing energy requirements in the state.
Reportedly, the peak power demand is set to nearly double, from the current peak of 18,548 megawatt (MW) to 34,137 MW by 2035-36. Further, the annual electricity requirement is expected to increase to 152,626 million units (MU) within the same period.
In addition to this, the deputy CM commended the sector’s recent performance, noting that the peak demand of 18,548 MW on March 27 has been met successfully without major outages. Considering the upcoming monsoon, he issued a directive for all departments to remain fully prepared for it and to ensure that the public does not suffer power outages or service interruptions during the rainy season.
FAQs
How much will be the DA for power sector employees in Telangana following the hike announcement?
The Telangana government approved a 1.621 per cent increase, raising the DA from 17.651 per cent to 19.272 per cent, effective retrospectively from January 1, 2026.
How many people will benefit from the hike?
The hike is expected to benefit 70,804 employees, artisans, and pensioners engaged in the power sector in the state.
What are the long-term power demand projections for the State?
Telangana's peak power demand is projected to reach 34,137 MW by 2035-36, with annual requirements rising to 152,626 million units.
