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Home News Power Sector News TNEB to be unbundled into 3 companies by December 2009

TNEB to be unbundled into 3 companies by December 2009

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TNEBThe Tamil Nadu Electricity Board (TNEB) is all set to complete the unbundling process . The transmission company registered in June this year is expected to become operational from December 15. TNEB now awaits the registration of its generation and distribution wings and the holding company.

While the generation and distribution company would be known as Tamil Nadu Generation and Distribution Company Ltd (TNGENDISCO), the holding company will be called TNEB Ltd. "We are awaiting government orders. Once we get it, we will register the companies. The consultancy firm appointed to look at the auditing and transfer of assets and liabilities has submitted its report," said a senior TNEB official.

He said that the transfer of the assents and liabilities alone would take some time. "Otherwise the unbundling process is on the right track. We will complete it in December. The registration and other formalities will not take much time." The deadline for TNEB to implement the unbundling process falls in December. In June, the transmission company was registered.

The official added that four teams comprising mainly of representatives from the various TNEB labour unions were sent to West Bengal, Andhra Pradesh, Karnataka and Maharashtra to study the benefits of unbundling.

"We have also sent a TNEB official with each team and they have submitted their reports. The labour unions are yet to furnish theirs, which would tell us what they felt about the functioning of the unbundled electricity boards in those states," he said.

The TNEB labour union members are, however, not satisfied with the procedure of unbundling. They state that the socio-economic conditions are different in every state.

"States like West Bengal concentrate on selling power and does not buy power. At TNEB, we buy power at a high cost but sell at a lower price to domestic consumers. We also supply power free of cost for agriculture and hut services. So the board should first evolve means to manage the losses. If the board is split without doing so, the consumer will have to bear the brunt," said a union member.

He said that if the unbundling took place, some segments would suffer losses while others would not. "The transmission company will not have to face losses and will gain from the wheeling charges (usage of transmission lines). But the distribution company and generating company alone will have to manage the financial burden due to generation and supply price difference and line loss," said the member.

Source - Times of India

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