Tamil Nadu will be power surplus by the end of this year, Chief Minister J. Jayalalithaa said . "Very soon Tamil Nadu will become power surplus. When I said this last year, many scoffed at (the claim)," the Chief Minister told the assembly. "When it is said now, everybody believes this as nearly 99 percent of that has been achieved."
She said the remaining one percent will be achieved before this year ends and the financial position of the state power utility will also improve.
Blaming the previous DMK government for the Rs. 40,375 crore loss of the Tamil Nadu Electricity Board (TNEB) as on March 2011, she said the Reserve Bank of India (RBI) wrote to all banks not to lend to the power utility.
While studies are under way for setting up a 2,000-Mw hydel power plant in Nilgiri district with an outlay of Rs 7,000 crore, the preliminary work on a 1,600-Mw thermal plant in Uppur was under progress, she said.
The state would soon finalise tenders for 1,320 Mw thermal power plants at Udangudi to be set up at a cost of Rs 9,000 crore with coal jetty; Ennore Special Economic Zone costing around Rs 8,000 crore and a 660-Mw power plant here involving Rs 4,000 crore.
Jayalalithaa said the state had signed long term agreements (15-year tenure) with power producers to procure 3,330 Mw. A bulk of this would be from Odisha and Chhattisgarh.
The state government took over TNEB's debt and infused money into the utility and brought it back to its old position, she said.
Jayalalithaa said under the financial restructuring scheme, 50 percent of the utility's short term debt will be taken over by the government and bonds worth Rs.6,353.49 crore has been issued to banks.
She said the government has given a guarantee of Rs.22,700 crore so that the power utility could raise debt and Rs. 5,951.43 crore of bank debt would be restructured.
Source - Hindu