Breaking News:
New entity for power generation likely
Vivek NarayananVivek Narayanan, TNN | Jun 10, 2011,
CHENNAI: In a move to enhance power production in the state, the Tamil Nadu Electricity Board (TNEB) is planning to form a separate company for generation — decoupling generation from distribution. The TNEB was split into three during November 2010. The three companies were Tamil Nadu Generation and Distribution Company (TANGEDCO), Tamil Nadu

Transmission Company (TANTRANSCO) and TNEB Holding Limited. But across the country, the generation company functions as a separate entity.

If generation becomes a separate entity, TNEB will be able to concentrate specifically on augmenting production capacity. "This is absolutely essential at a juncture when the state is reeling under a severe power crisis," said a senior official from the ministry of power. The generation company will be allocated a specific amount using which it can concentrate on setting up power projects to meet the future demand. As of now, the funds have to be shared with the distribution company. "Except Punjab and Kerala, all the other states have split their electricity boards. They have a separate company for generation," said the official.

"First, the board has to conduct a detailed study of the functioning of exclusive generation entities in other states and then discuss with stake holders including the unions. Then it has to get permission from the Tamil Nadu Electricity Regulatory Commission (TNERC). Only after this will it be split," said the official.

These discussions come at a time when chief minister J Jayalalithaa is talking of improving the power scenario in the state. She has been reviewing the status of the existing projects on a weekly basis.

"The TNEB officials are also closely monitoring the progress of the projects. The three projects — Vallur, Mettur and North Chennai — that could enhance the power generation capacity by 2,800 MW will be completed by March," said the official. However the entire process of unbundling is not yet over. TNEB is yet to allocate manpower to the three companies.

"The unbundling has hit a road block now as the unions want a separate pension fund for 72,000 pensioners. It will take a lot of money to form one. Only after this will the tripartite agreement be signed," said the official.