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Home News Power Sector News TNEB seeks help from Japan to fund infrastructure works

TNEB seeks help from Japan to fund infrastructure works

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JICAThe cash-strapped Tamil Nadu Electricity Board Limited (TNEB) has sought assistance from the Japan International Cooperation Agency (JICA) to fund its various power infrastructure development works. A JICA team has already visited the state. The TNEB proposal, if accepted by the Japanese agency, will see a good cash flow. Officials feel the long-term loan sought from JICA is more feasible than short -erm ones offered by local financial institutions.

Sources said the TNEB had lined up projects to increase power generation by an additional 10,000MW but there are not enough sub-stations or distribution infrastructure to carry the generated electricity. There are 1,350 sub-stations now. "We need to increase them in order to ensure good power supply to consumers," said a TNEB official.

But the power utility cannot fund the development on its own. As on March 31, 2011, its accumulated losses stood at Rs 38,000 crore. The outstanding debt in 2010-11 was Rs 40,300 crore and Rs 400 crore is paid as interest to various financial institutions.

The TNEB, most of whose loans are short-term ones, thought of seeking the help of an international funding agency for monetary assistance on a long-term basis. "We will have to send a detailed proposal for the assistance. Incase they provide us it would be really helpful," said a senior power manager.

The decision comes after the Tamil Nadu government signed a memorandum of understanding (MoU) with Japan to attract investment. Chief minister J Jayalalithaa invited investments in manufacturing, water treatment, renewable energy and minor ports. Earlier, a Japanese agency had shown interest in funding the TNEB's Rs 4,000-crore project to improve wind energy evacuation. But the move was hampered after a tsunami struck Japan.

The time, TNEB officials feel, the funding will happen. "It takes a lot of money to construct a sub-station. In the next five years, we will need nearly 3,000 sub-stations. So we need some funding," said the official.

Source- Times of |India


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