Nearly Rs 14,000 crore to be allocated for state energy sector

Chief Minister Edappadi K Palaniswami reviewed the performance of the energy sector and has issued instructions to improve power efficiency and to come up with ways and means to overcome the losses suffered by the Tamil Nadu Generation and Distribution Corporation (Tangedco). 

Sources said that the takeover of Rs 22,815 crore debts from Tangedco in 2016-2017 under the Ujwal Discom Assurance Yojana (UDAY) by the government has improved the financial position of the Tangedco. As per the commitment under UDAY scheme, the state has the mandate to take over 10 per cent of the losses suffered by the Tangedco in 2017-2018 in the ensuing financial year. 

Under this head, the state has earmarked Rs 297.50 crore and the same has been allocated in the Budget Estimates 2018-2019 for this purpose. The state has set aside Rs 1,779.42 crore to honour the interest commitment and Rs 4,563 crore towards grants for adjusting the loans given to the Tangedco. In a separate meeting, EPS reviewed the performance of Social Welfare Department and Noonmeals programmes. 

Sources said as much as Rs 1,747 crore would be spent towards Nutritious Meal Programme and Rs 2,140 crore would go for Integrated Child Development Scheme. The Social Welfare department would have a total allocation of Rs 5,611 crore for the current fiscal. 

As the CM reviewed the operations of Commercial Taxes and Registration department, sources said the revenue projection from Commercial Taxes has been pegged at Rs 86,858 crore, the segment being the largest contributor to the State’s Own Tax Revenue. 

Sources said the downward revision of guideline value and increase in the registration fee has positively impacted the revenue collections. As a result, the receipts under the stamp duty and registration fees have been estimated to be Rs 9,806 crore in the Revised Estimates 2017-2018 and Rs 10,935 crore in the Budget Estimates 2018-2019.