TN seeks Rs 85,000 cr aid from Centre for power sector
Business Line Bureau

PTI Seeking support: The Prime Minister, Mr Manmohan Singh, receives a memorandum from the Tamil Nadu Chief Minister, Ms J. Jayalalithaa, during a meeting in New Delhi on Tuesday.
Chennai, June 14:

The Tamil Nadu Government has sought a Rs 40,000-crore bail out package for the State power utility.

The Chief Minister, Ms Jayalalithaa, who met with the Prime Minister, Dr Manmohan Singh, in Delhi today, sought the bail out package for the Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco), apart from Rs 45,000 crore for solar power project initiatives planned in the State.

The Chief Minister also asked the Centre to speed up the Central power projects in the State and allocate more power from the Central pool.

The Tangedco is facing an accumulated loss of Rs 38,000 crore and a debt of Rs 40,300 crore as of March 2011. The losses were Rs 4,900 crore in 2005-06 and debt Rs 9,300 crore. Debt servicing and operations of the State utility are under threat and the bail out package is needed to wipe out the debt and bring down losses.

This was among the assistance the State Government has sought from the Centre in a 30-page memorandum Ms Jayalalithaa submitted to the Prime Minister.

According to a copy of the representation released to the media, the State Government has said that the demand for power in the State has gone up to 11,500 MW against an available 10,000 MW which includes power purchased from traders.

Tangedco purchases over 1,800 MW from the open market, as supplies by the Central generating stations and own generations are not at optimum level.
Solar projects

The State Government also sought Rs 45,000 crore from the Centre for solar power generation projects.

Ms Jayalalithaa said Tamil Nadu plans to set up 10 solar energy parks of 300 MW each to strengthen power generation.

It also hopes to provide solar powered street lights in villages under the Jawaharlal Nehru Solar Mission and supply solar power to households below the poverty line. Funds could be provided under the National Clean Energy Fund, she said in the representation.

The JNNSM seeks to set up 1,000 MW of solar power through the Ministry of New and Renewable Energy in the first phase. In Tamil Nadu seven developers have been given permission to set up 1 MW each.

The Chief Minister urged the Central Government to expedite the Central power generation projects now under implementation in the State.

These include the Koodangulam Atomic Power Station (2 x 1000 MW) by the Nuclear Power Corporation which was scheduled to commence operations in 2007-08; the Neyveli Thermal Station II (2 x 250 MW) by the Neyveli Lignite Corporation Ltd scheduled to start in 2008-09; and the PFBR Kalpakkam (2 x 250 MW) by the Nuclear Power Corporation of India Ltd scheduled to commence generation during 2010-11.

The Centre should also expedite the Cheyyur 4,000-MW Ultra Mega Power Project and the captive port by the Coastal Tamil Nadu Power Ltd formed by the Power Finance Corporation of India, the nodal agency, she said.

The State has also asked for an additional allocation of 1,000 MW from the Centre as the shortfall in the State has affected the industrial sector, domestic consumers and agriculture which is the worst hit.