Tamil Nadu eyes power sector reforms amid demand spike and load-shedding fears

CHENNAI: The long-awaited reform process in Tamil Nadu’s power sector is finally under way. As the State stares at an unexpected spike in electricity demand, the DMK government is going ahead with its plan to split the generation and distribution businesses managed under the state-run Tamil Nadu Generation and Distribution Corporation (TANGEDCO) into two separate companies.

An EY India-led consortium of consultants has begun the initial ground work. The consortium will handhold the power companies, and submit a detailed report in 15 months. The government is also looking to overhaul the high-cost debt raised by them in order to reduce the interest outgo, two senior officials told The New Indian Express.