TN Power Finance deposits up 7-fold

The number of deposits grew from 816 in 1991-92 to 2,74,365 as on March 31.

A senior official of TN Power Finance said the corporation offered higher interest rates on deposits, resulting in the deposits reaching Rs 557 crore in the fiscal 2008.

He added that with effect from May 7 this year, TN Power Finance will offer 9 per cent interest on 12-month deposits, 9.5 per cent on 24 months and 10 per cent on 36, 48 and 60-month periods. For the same period, banks currently offer 8.5 per cent, 9 per cent, and 9 per cent respectively.

 

The funds mobilised by TN Power Finance are being utilised mainly to finance Tamil Nadu Electricity Board (TNEB) projects. Total financial assistance provided to TNEB since the corporation's inception has been Rs 7,806.49 crore. Net loan outstanding from TNEB was Rs 3,049.98 crore as on March 31, 2008.

TN Power Finance rendered record net assistance of Rs 614.97 crore to TNEB during 2007-08, surpassing the previous high of Rs 367.16 crore in 1994-95.

The corporation has also provided loans worth Rs 49.70 crore to the Poompuhar Shipping Corporation, the Tamil Nadu Industrial Investment Corporation and Tamil Nadu Industrial Development Corporation Ltd.

It has also declared a dividend at 20 per cent on its paid-up share capital since 1995-96. Till 2006-07, the corporation has paid a total dividend of Rs 47.62 crore to the Tamil Nadu government. A net deposit target of Rs 300 crore has been set for 2008-09.