Tamil Nadu government has extended a total Rs 13,586 crore financial support for the power sector in the Budget estimate 2015-16. The state administration has extended Rs 11,748 crore to Tangedco in the form of subsidy, share capital, cash loss financing, debt servicing and debt takeover during 2014-15. A sum of Rs 2,000 crore has been provided in the Budget estimates as share capital to support Tangedco. Budgetary allocation for power subsidy for 2015-16 has been enhanced to Rs 7,136 crore.
Tamil Nadu chief minister O Panneerselvam said the power shortage in the state had been reduced through creation of additional 4,991-Mw through the commissioning of thermal power projects such as the Mettur Stage - III, North Chennai Stage II and all three units of TNEB-NTPC joint venture at Vallur and procurement of power through medium and long term purchase agreements.
Though the power consumption had risen substantially, the chief minister said the demand-supply gap had almost been bridged.
The state government is expediting the execution of power projects, including the Ennore Thermal Power Station Expansion (660-Mw) and Ennore SEZ Thermal Power Project (2X660-Mw).
In addition, preparatory works are under progress in the Ennore Replacement Thermal Power Project (660-Mw) and north Chennai Power Project Stage III (800-Mw). Further, land acquisition is being carried out for the Uppur Thermal Power Project.
The Tamil Nadu Transmission Corporation (TANTRANSCO) has taken up the establishment of a network of high capacity transmission lines in the state with an estimated Rs 6,000 crore, mainly to evacuate renewable energy.
Funding worth Rs 1,593 crore for creating a portion of this transmission network infrastructure, with 40 per cent grant from the National Clean Energy Fund and 40 per cent loan assistance from the KfW German Fund, is expected in the next year. Twenty per cent of the project cost will be provided by TANTRANSCO as equity.
Under the financial restructuring plan, Tamil Nadu has agreed to take over debt worth Rs 6,353 crore floated in the form of bonds in 2013-14. The government had already taken over Rs 1,000 crore of them during the current fiscal year. Another Rs 2,000 crore would be taken over by the government during the year 2015-2016, said the chief minister.
Source- Business standard