The Tamil Nadu government has registered its newly-formed entity Tamil Nadu Transmission Corporation (TNTransco) with the registrar of companies to handle power transmission in the state. The company will have a capital base of Rs 20,000 crore.
State electricity minister Arcot N Veerawamy said the government was looking for private partners to join hands. A few domestic players, including Power Trading Corporation, apart from international players have shown interest to invest in the new company.
All the 66 KV substations, transmission lines and other facilities run by the state electricity board will fall under the transmission company.
The Tamil Nadu Electricity Board will become illegal after June 15, 2009, if it is not unbundled as per the provisions of the Electricity Act, 2003.
The state is likely to face a power shortage in the range of 1,500 Mw to 3,300 Mw from June this year to March 2010, according to TNEB.
Southern India Chamber of Commerce & Industry president M Balasubramanian said the bifurcation was particularly important in an industrial state like Tamil Nadu with severe demands on its capital.
Efficiency gains in the power sector would result in lower prices for consumers. The unbundling proposal also paves the way for further reforms , the most important being the rationalisation of the tariff structure, he added.
