Tangedco loss reduced by 16 pc: Senthilbalaji

Chennai: Electricity Minister V Senthilbalaji on Tuesday said that Tangedco has reduced its revenue loss by 16 per cent to Rs 11,213 crore in 2021-22 as against Rs 13,407 crore in 2020-21.

Initiating the debate on the demand for grants for the electricity, prohibition and excise department, the Minister said that the TNEB has been incurring continuous losses over the years due to increases in fuel cost, expenses toward the purchase of power from private generators, interest on loans and employees benefit expenses. But, the recovery of power supply cost through tariff was also not given effect for the past eight years.

He said that Tangedco in 2021-22 procured power for Rs 42,080 crore and sold the same for Rs 49,894 crore which resulted in additional record revenue of Rs 7,814 crore. “In 2020-21, Tangedco procured power for Rs 40,377 crore and sold them for Rs 42,284 crore. After taking various reformative initiatives, the Tangedco loss was reduced in the last fiscal,” he said, adding that the gap between the average rate of realisation and the average cost of supply to Rs 1.94 per unit in 2021-22 from Rs 2.44 per unit in 2020-21. He said that the state is in discussions with the lenders to its power utility to reduce their interest rates. He said that the state power utility is having accumulated losses to the tune of Rs 1,66,704 crore. He said the DMK government has proposed to take measures such as the installation of smart meters, restricting high-cost power purchases and others to increase revenue and reduce expenditure.

The government has also initiated discussions with financial institutions such as Rural Electrification Corporation (REC), Power Finance Corporation (PFC), Tamil Nadu Power Finance Corporation (TNPFC), among others and commercial banks to reduce the rate of interest to 9 per cent, Senthilbalaji said.

He said Tangedco in 2021-22 achieved a savings of Rs 2,200 crore by measures like improved generation by optimum operation of the existing generating stations, savings due to interest reduction, fly ash sale, power swapping arrangements and reduction in distribution losses.