Tamil Nadu team to take up UDAY issue with Centre

Chief Minister J Jayalalithaa seeks central loans for revenue and capital expenditure

A team of officials from the Tamil Nadu headed by state Electricity Minister P Thangamani will visit New Delhi to pursue Tamil Nadu's request with the Centre on the Ujwal Discom Assurance Yojana (UDAY) debt restructirng scheme for power distribution companies. The central government has been requesting the state to join the scheme, though the state government has expressed its reservations on joining it.

The decision to send a team to New Delhi for detailed discussion was announced by Chief Minister J Jayalalithaa after Piyush Goyal, Union Minister of State for Power, Coal, New & Renewable Energy and Mines (Independent Charge) met her in Chennai today.

Goyal, who prior to the legislative assembly elections earlier this year alleged that the Tamil Nadu Chief Minister was not accessible even to the central ministers, said before the meeting today that his meeting with the Chief Minister is just a courtesy call. Goyal has been requesting the state to join the UDAY scheme, stating that it would benefit the state about Rs 22,000 crore in first three years and about Rs 7,000 crore every year after that.

The Tamil Nadu, in a statement issued after meeting the Union Minister said that the Chief Minister has pointed out that she had already requested the Prime Minister to consider certain requests to ensure that the State finances are not adversely affected, while taking over the debt of TANGEDCO, the State discom.

"The Chief Minister requested that the Government of India may consider the request of Tamil Nadu Government positively," added the statement. The Chief Minister informed that a team headed by the Minister for Electricity, Government of Tamil Nadu consisting of Chief Secretary, Additional Chief Secretary, Finance, Chairman and Managing Director of TANGEDCO and other senior officials will visit Delhi for detailed discussions with the Union Minister, it added.

She requested that the Rural Electrification Corporation (REC) and Power Finance Corporation (PFC) which are Central Public Sector Undertakings, may extend co-operation by providing loans for both revenue and capital expenditure and also for the new power projects proposed by Tamil Nadu.

The State has added 8432.5 MW to the State Grid during the last five years, making Tamil Nadu not only a power sufficient State but also a power surplus State. It has an installed capacity of 7600 Mega Watts of wind power and is in a position to sell wind power to other States who require to fulfill their Renewable Purchase Obligation (RPO). She reiterated that it is absolutely essential to provide a dedicated green corridor to export the surplus power to other States.