Tangedco hopes to clear dues to renewable energy companies soon

The Tamil Nadu government-owned electricity generation and distribution company, Tangedco, hopes it will be able to soon clear its dues to wind and solar companies as it expects two developments that would help it do so.

First, the utility has requested the central funding agencies—PFC, IREDA and REC—to provide bridge loans so that it may clear its dues. A senior official of Tangedco has told Business Line that the utility has told the funding agencies that they may pay Tangedco’s creditors directly— and Tangedco would take the loans on its books.

The utility has requested for about ₹2,000 crore for immediate payment. Tangedco owes around ₹2,000 crore to renewable energy companies and around ₹14,000 crore on the overall, to its power suppliers and other contractors.