Tangedco's finances improving after nearly a decade

The Tamil Nadu Generation and Distribution Corporation’s (Tangedco) finances are looking up slowly but steadily after the Centre asked all power generators to get the money pending from various discoms through installments. Following this, ₹17,191 crore pending towards various power generators are being returned in equal installments over 48 months.

Power supply from these generators is being supplied without any problem and also Tangedco, after nearly 10 years, does not have any pending money to power generators beyond the funds remaining under ₹17,191 crore.

“The installments started in June and so far ₹3,438 crore has been returned to various power generators. Each month we are paying ₹358 crore and this has lowered our burden to an extent,” said a senior Tangedco official.

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“From June onwards, we are paying off power generators and as of now we don’t have any debt towards the generators apart from ₹13,753 crore which we are allowed to pay in installments,” said the official.

Debt issues

In August, the Centre barred 27 distribution companies (discoms) across 13 states from buying or selling electricity in power exchanges citing their non-payment of dues to generation companies.

“Following this, the Centre allowed discoms like us to pay the debt to power generators in installments without any interest. In 2020-21, the interest payment increased to ₹10,837.87 crore at the rate of 10.45% and the total amount includes ₹510.77 crore paid towards loans taken for working capital,” said the official.

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The total debt at the end of 2020-21 was ₹1,23,299 crore. Each year, Tangedco borrows more than what it repays. Due to this, the total debt has been on the rise and along with the interest outgo also increases.

From 2012 onwards, Tangedco’s debt started to increase as the state depended on private power generators as well as electricity exchange to purchase power.

Employee demands

On various demands from the current Tamil Nadu Electricity Board (TNEB) workers as well as retired employees, the official said they will be fulfilled once the revised tariff collection starts.

“At present, we have only received the revised collection from high-tension consumers as they pay every month. With regard to domestic consumers, we will be collecting the new tariff mostly in November. Once the revised collection starts coming, we will be able to fulfil the demands of both present and past employees,” said the official.

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Recently, retired employees protested across TNEB offices in the state. “We have sent a note to the finance department seeking to increase the DA for retired employees by 3%. Once the department sanctions 3% DA, we will release the funds,” assured the official.