CHENNAI: Condemning the decision of the Tangedco (Tamil Nadu Generation and Distribution Corporation) to set up substations and power lines with private investment, PMK founder S Ramadoss warned that the move will privatise the discom.

In a statement, the senior leader said that maintenance of several sub-stations have been handed over to private firms. "Construction of a sub-station on 132 acres in Uthukuli in Tiruppur with a power grid has been proposed at Rs. 4,500 crore. The government has decided to implement the project with private contribution. This will speed up the privatisation of Tangedco," he added.

Saying that the Tangedco has to pay charges to the private companies for the power that would be transmitted through privatised lines and sub-station, Ramadoss added that arrangement will be more expensive than creating the facilities with Tangedco funds.

"Tangedco is already facing severe losses. Even though the tariff was increased to earn additional Rs. 40,000 Crore in the last three years, the discom continues to face losses. Paying charges to private for carrying power will add to the losses. So, the government should drop the proposal and create the facilities using Tangedco funds," he urged.