Tamil Nadu power utilities to raise Rs 11,000 cr

The Tamil Nadu government’s power utilities would raise Rs 11,000 crore, through bonds and guarantee. The money will be raised by Tamilnadu Generation and Distribution Corporation Ltd (TANGEDCO) and Tamil Nadu Power Finance Corporation. The state electricity board also said it would generate additional revenue of Rs 9,000 crore from next year by increasing tariff.

Tamil Nadu Electricity Board (TNEB’s) Chairman Rajeev Ranjan said that, “It has become challenge for us to borrow from the banks, which are shying away from the sector. To address this issue the state government has given guarantees to get funds to the tune of Rs 5,000 crore. Besides, the state Power Finance Corporation will also raise Rs 6,000 crore through bonds.”