CHENNAI: A day after the State government issued an order to bifurcate Tangedco and form a new Tamil Nadu Energy Corporation Limited, employees unions see red and alleged that the government is trying to privatize the discom.

Joint Action Council of Tamil Nadu Electricity Board Trade Unions, staged a protest, on Saturday, in front of EB offices opposing the move.

"The intention of the government to make Tangedco into small companies is to avail loans. The companies could not repay the loans which would result in bankruptcy. This will allow the government to sell the companies to private firms," T Jaishankar of the Central Organisation of the Tamil Nadu Electricity Employees (COTEE), said.

Moreover, he alleged that the government is reducing thermal power production despite the available capacity to allow the purchase of power from private companies.

"Production power in thermal plants is Rs. 6.50 per unit. But during the summer, the government is procuring at Rs. 20-30 per unit. Government spends Rs. 50,000 Crore per year to purchase power," Jaishankar said.

Apart from forming Tamil Nadu Energy Corporation Limited, which will oversee generation through renewable sources, Tangedco has been bifurcated into Tamil Nadu Power Generation Corporation Ltd (TNPGC) and Tamil Nadu Power Distribution Corporation Ltd (TNPDC).