TNEB losses near Rs 10,000 cr

Tamil Nadu Electricity Board's (TNEB) loss has increased almost by Rs 8,000 crore over the last four years to Rs 9,680.25 crore. The Board incurred losses as its dependence on borrowings increased to Rs 32,039.26 crore in the said period, and it was dependent on costlier power from others sources.

According to the Comptroller and Auditor General of India (CAG) report in 2009-10, TNEB has reported a loss of Rs 9,680.25 crore as compared to Rs 7,771 crore in 2008-09, Rs 3,512 crore in 2007-08, Rs 1,219 crore in 2006-07 and Rs 1,329 crore in 2005-06.

During the same period, cash deficit had increased to Rs 7,665 crore in 2009-10 from Rs 8,414 crore (2008-09), Rs 4,603 crore (2007-08), Rs 2,220.48 crore (2006-07) and Rs 751 crore (2005-06). The cash deficit was overcome by increased borrowings in the form of cash credit/ loans from commercial banks and other financial institutions, which amounted to Rs 9,584 crore in 2005-06 to Rs 32,039 crore in 2009-10.

 

The report said there was an urgent need to optimise internal resource generation by reducing excess fuel consumption, forced outages, auxiliary consumption, O&M and manpower cost.

CAG stated that the supply of coal suffered from deficiencies such as short receipt of coal against linkage, which resulted in loss of generation of 812.77 Mus during 2008-10 valued at Rs 266.44 crore. Deficiencies were also noticed in the system of coal handling at NCTPS and TTPs resulting in extra expenditure of Rs 20.58 crore.

A comparison of the rates finalised by the Board for the purchase of imported coal with that of the rates of similar grade coal imported by another state PSU indicated that the Board had incurred extra expenditure of Rs 337.76 crore.

Excess consumption of 4.5 million tonnes of coal at TTPS with reference to TNERC norms resulted in additional expenditure of Rs 1,103.30 crore. The manpower in excess of the norms in thermal and gas stations resulted in extra expenditure of rs 279.65 crore.