Telangana SPVs pay critical dues, avoid NPA tag

Rural Electrification Corp Ltd (REC), has clarified that the Telangana based Kaleshwaram Irrigation Project Corporation Limited (KIPCL) and Telangana State Water Resources Infrastructure Development Corporation (TSWRIDC) have paid their critical dues amounting to Rs 665 crore to REC preventing the twin irrigation company accounts from slipping into a non performing asset (NPA). The loans though are still classified as SMA 2 (Special Mention Account 2) accounts.

The two special purpose vehicles (SPV) were floated by the previous BRS government together have outstanding loans of Rs 27,787 crore as of March 2025 from REC which were taken for various irrigation projects including Kaleshwaram, Palamuru-Ranga Reddy, Sitarama, Devadula, Sriram Sagar flood flow canal and Kanthanapally irrigation projects.

The two companies’ outstanding dues to REC from these SPVs were at Rs 1,393.65 crore accumulated since March 2025. In a letter to Principal Secretary Rahul Bojja, last week REC had said that unless payments are made by June end, the accounts could slip into NPA.


In a notice to stock exchanges REC said the payments have been made within the timeline. “The respective utilities have cleared their critical over-dues and as on June 30, 2025, there are no critical dues of KIPCL and TSWRlDC. Further, both loans are secured and have been extended against State Government Guarantee. It is further to clarify that as on date, there are no loan assets which may tum into fresh NPA on account of outstanding dues,” REC said.