UDAY scheme a boost to TANGEDCO

This is because of the 22, 000 MW which the corporation claims it has to meet any eventuality (only 49 per cent is from its own thermal, hydro and gas resources which totals 7140 MW). Thermal power is from Mettur Thermal stations I and II, Thoothukudi thermal power station and North Chennai thermal power station , while the corporation’s hydro stations are located at Kundah, Erode, Tirunelveli, and Kadamparai and the gas stations at Basin Bridge, Courtallam, Valathur and Tirumakottai. The remaining power is supplied by independent and private power suppliers and central utilities, including power generated by wind, solar, co-gen, biomass and wheeling (Captive Power Plant). 

The daily grid details provided by TANTRANSCO (Tamil Nadu Transmission Corporation) quotes daily power availability of 18, 100 MW and also includes the legend that new projects and CPP (wheeling) wind, solar, co-gen and biomass which also provide power to the state grid are not included in the daily calculations. 

According to the latest TANGEDCO’s balance sheet for 2016 total funds available are Rs 1,13,17,724 lakh compared to Rs 91,35,878 lakh while power sold in 2015-16 was 79.464 MU (million units) compared to the 76, 828 MU the previous year. In 15-16 revenue from sale of power amounted to Rs 41,51,575 lakh compared to Rs 35,07,222 lakh in 14-15. The 201516 financial year ended with a deficit of Rs 5,78,682 lakh slightly lower than the Rs 12,75,659 lakh of the earlier year. 

However, while the corporation spent Rs 8,74,422 lakh to generate power in 15-16, it spent 30,65,170 for the same purpose the preceding year. This proves that TN joining the UDAY scheme resulted in the financial load coming down drastically. A UDAY stipulation was that the state government should take over 75% of the power utility’s debt which thus made the corporation reducing its debt and thus readying itself for the anticipated profit in 2017-18. 

It was at this juncture that the corporation received a jolt when a private player moved the NCLT (National Company Law Tribunal) to declare itself insolvent as TANGEDCO owed it slightly more than Rs.700 crore. NCLT has asked TANGEDCO for its reply within a week. 

When asked, TANGEDOC’s top officials said, “The issue is ridiculous as the matter is already pending with the Madras High Court, since 2009. The private player had not supplied power as needed and had even supplied power when not authorised to do so.” He further added that “TANGEDCO will contest the case and not pay any money.” Asked about the pendency of payment for government and private power supplies, the official said, “There is no pendency as payment is made either within 60 days or 90 days. With the corporation being eligible for a 2% discount for payment within 60 days and half percent if paid within 90 days, we stand to gain if we pay on time.”

Payment for wind power has been cleared till September and that for solar power too is nearly complete, officials said. “The private player’s complaint will not stand scrutiny and we will not pay out when the court is yet to decide on the issue. This is just a short cut method to force us to pay,” they added. 

Officials sources added that the main share of revenue generated went toward payment of salaries and for payment of pensions.