Government of Telangana (GoTG) has formed a company named Telangana Rythu Power Distribution Company Ltd (TGRPDCL) to handle power supply to agriculture and a few other government supported consumers. Based on the application from TGRPDCL for a distribution license and additional information, TGERC invited comments from the public. Comments from Prayas (Energy Group) raise regulatory and operational challenges of forming a separate distribution licensee to cater to only a few categories of consumers. It suggests that a trading licensee would be a better institutional structure. Instead of vesting all the financial losses and liabilities on TGRPDCL, it suggests that GoTG should take steps to ease the financial health of the distribution companies.