Tangedco seeks state nod for trifurcation to manage debt

CHENNAI: The state’s cashstarved power behemoth, Tamil Nadu Generation and Distribution Corporation (Tangedco), is to be trifurcated, with three distinct utilities being formed for generation, distribution and renewable energy.

A decision to this effect was taken by the board of directors of Tangedco following a recommendation from consulting firm Ernst & Young. In August, the consulting firm, engaged by the state in 2021 to study Tangedco’s financials, submitted a comprehensive report and analysis with solutions to relieve it from the current financial crisis.

Records show Tangedco has an outstanding debt of `1.6 lakh crore. On Saturday, the board comprising officials from Tangedco and the finance department decided to forward the report recommending the formation of new companies.