TN to provide Rs 10,575 crore aid to Tangedco this fiscal

The govt has rescued the debt-ridden company by providing financial assistance to the tune of Rs 25,255.35 crore in the last three years

The state government is expected to provide Rs 10,575 crore assistance this fiscal to Tamil Nadu Power Generation and Distribution Corporation Limited (Tangedco) as part of the latter’s financial restructuring.

The government has rescued the debt-ridden company by providing financial assistance to the tune of Rs 25,255.35 crore in the last three years.

Speaking in the Assembly today, electricity, prohibition and excise minister Natham R Viswanathan said as part of the approved financial restructuring, the state government had agreed to absorb 50 per cent of Tangedco’s short-term loan.

The minister said the government’s current total assistance to the state power utility was much higher, when compared with Rs 11,213.95 crore allotted during the previous DMK-led government.  

The overall assistance by the present government includes Rs 7,913.35 crore in 2011-12, Rs 9,242 crore in 2012-13 and Rs 8,100 crore in 2013-14. This had come through bonds and other channels. The total assistance received by the utility from the AIADMK government and the previous administration stood at Rs 35,830.35 crore.

He also said the state government had given a guarantee for Tangedco to raise Rs 5,000 crore from Power Finance Corporation, REC, banks, and another Rs 6,000 crore from Tamil Nadu Power Finance and Infrastructure Development Corporation Ltd, which is a state-owned firm.

Tangedco is the first among the power utilities in the country to see a complete financial restructuring.

DMK responsible for power crisis: CM
Earlier, intervening during the speech of DMK legislator and former minister I Periyasamy on a debate on the demand for grants for electricity department on Monday, chief minister J Jayalalithaa alleged the DMK regime had procured power for the state at a higher cost.

“The DMK has no locus standi to talk about power cuts, as it was the party that introduced it in Tamil Nadu,” she said.

On issue relating to power connection to the farmers, the chief minister said the state government was providing uninterrupted power for 12 hours along with a three-phase connection to them.

Mega project
Tamil Nadu is likely to get 1,600-Mw power from the proposed 4000-Mw Cheyyur Ultra Mega Power Project estimated at a cost of Rs 25,970 crore.

The project is expected to be commissioned in 2019-20. The first part of the bid, request for qualification (RFQ), was opened in 2013. Five qualified bidders had purchased the request for proposal (RFP) documents, which are scheduled to be opened in September. Land acquisition for 1,100 acres has already been completed by the state.