TN to take over Tangedco liabilities worth Rs 2,000 cr

This is part of TANGEDCO's financial restructuring plan

The state government would take over the liabilities of Tamilnadu Generation and Distribution Corporation Ltd (Tangedco) worth around Rs 2,000 crore in 2014-15. This is part of its financial restructuring plan

Stating this in his Budget speech, finance minister O Panneerselvam said in 2013-2014, the state government had taken over Tangedco's loans worth Rs 1,000 crore out of the Rs 6,353 crore. It would take over the balance in the coming years.

In 2013-14, the government provided tariff subsidy of Rs 4,970 crore to it. In addition, Rs 2,153 crore was also released as equity share capital assistance.

Continuing this support, Rs 5,400 crore has been provided in the Budget Estimates 2014-15 for tariff subsidy and Rs 2,000 crore as share capital assistance.

The finance minister said in the past three years around 2,500 Mw of new generation capacity had been added by the government. Power purchase agreements for 3,330 Mw had also been made for long-term supply. Similarly 500 Mw power was being purchased through medium term PPAs.

Load shedding in the state was now minimal, he added.

With the financial assistance of The KfW, a German government-owned development bank, the state is planning to set up a Rs 1,593-crore green transmission line. It would take up transmission and distribution projects worth Rs 3,572 crore and Rs 5,000 crore respectively with the help of Japanese agencies.

ALSO READ: TN power utilities to raise Rs 11,000 cr

ALSO READ: Tangedco to raise Rs 500 crore via bonds