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| TN govt registers Rs 20,000 cr power transmission co |
| BS Reporter / Chennai Jun 16, 2009, 09:07 IST |
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The Tamil Nadu government has registered its newly formed entity Tamil Nadu Transmission Corporation (TNTRANSCO) to handle power transmission in the state. The company was registered with the registrar of companies on Monday. The capital for the new company would be Rs 20,000 crore and the government is looking for joint venture partners.
Under the Electricity Act, the board has to be restructured. In last October, the state government decided to reorganise the board by establishing the holding company, TNEB Limited, and two subsidiaries, TANTRANSCO and the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). All the companies will be fully owned by the government.
Earlier, Arcot N Veerawamy, minister for electricity, Tamil Nadu government said that the new company would require capital to the tune of Rs 20,000 crore. “The government is looking for private partners to join hands”. The minister also said few domestic, including Power Trading Corporation and international players have shown interest to invest in the new company. He did not disclose other companies names.
All the 66 KV sub-stations, transmission lines and other facilities run by the state electricity board will fall under the transmission company.
It may be recalled that on February 20, the Union Power Ministry conveyed to the state government that it had agreed for the continuation of the TNEB as the state transmission utility and a licensee up to June 15 for helping the state government to complete the restructuring process.
That was the last extension, and the TNEB will become illegal after June 15, 2009 , if not unbundled as per the provisions of the Electricity Act, 2003. (The last deadline expired on January 9).
The state has a more than two crore consumer base, the highest in India and is ranked as one of the top three industrialised and urbanised states in the country.
Monthly power shortage in state is likely to be in the range of 1,500 Mw to 3,300 Mw between this June and next March, according to projections of TNEB.
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