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Home News Power Sector News TNEB unbundled ito 3 companies - Transmission Co. inaugurated

TNEB unbundled ito 3 companies - Transmission Co. inaugurated

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karunanidhiSetting into motion the trifurcation of the Tamil Nadu Electricity Board (TNEB) in line with Central directive, Tamil Nadu government on 14-12-2009 reorganised Tamil Nadu Electricity board (TNEB) into three corporations as part of unbundling the power utility as per the Electricity Act 2003. While converting the board into a corporate, it has been recast into three entities: TNEB Ltd ( the holding company), TN Transmission Corporation and TN Generation and Distribution Corporation.

The Chief Minister, M Karunanidhi inaugurated TN Transmission Corporation, which will establish and operate power system network of all transmission lines and sub-stations of 66 kv and above. The company will also take care of planning and co ordination activities with regard to transmission, works connected with the transmission, scheduling and load despatch functions.

As per the latest government order on the composition of Tantransco’s board, TNEB chief C.P. Singh is the chairman of Tantransco too. R. Murugan, who is now Chief Engineer (Operations) has become the Managing Director. S. Akshayakumar, Chief Engineer (Transmission), and S. Sekkihzar, Chief Financial Controller (Revenue), have been made Director (Transmission Projects) and Director (Finance) respectively. There are five ex-officio Directors.

Three of them are the Secretaries of the Finance, Energy and Industries departments, and two are Directors of Generation and Distribution of Tangedco. The Transmission Corporation board includes the Director (Operations) and the Company Secretary.

Tantransco will establish and operate the power system network involving transmission lines and sub-stations rated 66 kilovolt (kV) and above.

Apart from planning and coordination functions relating to transmission, it would handle scheduling and load despatch functions.

The re-organisation was mandated by the Electricity Act, 2003. Since 2004, the TNEB was getting extensions regularly from the Centre for continuance as the State Transmission Utility and Licencee. Last week, the Union government gave one more extension, this time for three more months.

Necessary steps will be taken for the staff\officers of the three companies to exercise their option and join any of them at their will, an official release said. The existing benefits will be continued the officers and staff of all the three companies. "As promised by the Chief Minister, all the three companies will not be privatised at any time at any cost", the release said.

The transmission corporation, will be headed by the current Chairman of TNEB (C P Singh) and managed by MD with three functional directors. In addition, it will have on the board secretaries to Govt/Finance, Govt/energy and Govt/Industries departments.

Mr Karunanidhi, speaking on the occasion said, the step, in accordance with the electricity act 2003, would help in effective management and distribution of the growing power demand in the State to support its investor-friendly policies.

He said after coming to power in 2006, the DMK government had decided to add 5900 MW to the existing installed capacity of 10,214 MW and launched various projects in association with National Thermal Power Corporation and others.

"I am confident that the creation of the new corporations will ensure effective monitoring of these projects and distribution of power generated," he said adding the ongoing projects would be completed by 2012. The state would produce 15,152 MW by then.

Sources in TN power regulatory commission said the re organisation of board was long awaited. Now, the State has decided to comply with the
statutory requirements under the electricity act 2003. Ultimately, it should lead to competition and attracting private sector participation and investment in generation.

TNEB Chairman, CP Singh told ET, " The transmission corporation will be a neutral entity providing open access to consumers and generators. We have taken into account the experience in States like Andhra Pradesh and Orissa while not creating a separate corporation for distribution but combining it with generation. We don't' want the distribution corporation to have debt or any financial burden".

Trade and industry circles have welcomed the development and expected it to result in the better administration of power utilities and help the state to tide over the critical position on the generation front. They do not expect the Government to revise the tariff, which is already high in the State.

They said to bridge the demand supply gap, TNEB is executing projects worth Rs.36000 crore. It has also approved investment of Rs.1500 crore by way of modernisation and installation of Co-gen plants of 234 MW capacity in 17 co-operative sugar mills.

In 2009-10, against the projected installed capacity of 11,371 MW, and projected demand of 11,675 MW, the availability is pegged at 10,443 MW. By 2011-12, the state is expected to have an installed capacity of 15167 MW, projected demand of 14224 MW and availability of 13176 MW.

It is learnt the Government is not likely to face any resistance from the unions having given a substantial wage hike last month under a new accord. However, a spokesman of CITU led union said it is opposed to the re organisation in the interest of consumers and workforce. It has been favouring a single entity for all the three functions as in Kerala.

He said it will be difficult for the holding company to sustain the heavy loss and support investments unless it gets any relief from the Government. The transmission corporation will run on profit from without the need to incur any major expenditures and suffer line losses. It should absorb the current 10,000 to 12,000 workers. But, going by Maharashtra experience, there will be move to cut back the strength.

The government decided in October 2008 to create TNEB Ltd, the holding company, and two subsidiaries, Tantransco and the Tamil Nadu Generation and Distribution Corporation (Tangedco).

In June Tantransco was registered, and in September the Board sent a proposal to the government on the organisational structure of the corporation’s board of directors. On December 1, the holding company and Tangedco were registered.

Source -Economic Times

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