Chennai: The Tamil Nadu government will provide financial support of Rs 13,586 crore to the power sector as per its budget estimates for 2015-16.
The state administration extended Rs 11,748 crore to TANGEDCO in the form of subsidy, share capital, cash loss financing, debt servicing and debt takeover during 2014-15.
The budgetary allocation or power subsidy for 2015-16 has been enhanced to Rs 7,136 crore. A sum of Rs 2,000 crore is provided in the budget estimates as share capital support to TANGEDCO.
Tamil Nadu Chief Minister O Panneerselvam said the government tackled power shortage by expediting the commissioning of thermal power projects such as the Mettur Thermal Power Station Stage – III, North Chennai Thermal Power Station Stage II and all three units of TNEB-NTPC Joint Venture Thermal Power Station at Vallur besides procurement of power through medium and long term purchase agreements. This has resulted in the augmentation of power supply by 4,991 MW, he said.
At present, the demand-supply gap has almost been bridged, even though the power consumption demand has increased substantially, Panneerselvam said.
The government is expediting the execution of power projects such as the Ennore Thermal Power Station Expansion (1X660 MW) and Ennore SEZ Thermal Power Project (2X660 MW). In addition, preparatory works are under progress at the Ennore Replacement Thermal Power Project (1X660 MW) and North Chennai Power Project Stage III (1X800 MW). Further, land acquisition is being carried out for the Uppur Thermal Power Project, he informed.
The Tamil Nadu Transmission Corporation (TANTRANSCO) has taken up the establishment of a network of high capacity transmission lines in the state at a cost of Rs 6,000 crore, mainly to evacuate renewable energy, the CM said. Funding of Rs 1,593 crore for creating a portion of this transmission network infrastructure, with 40% grant from the National Clean Energy Fund and 40% loan asistance from the KfW German Fund, is expected in the coming year. 20% of the cost will be provided by TANTRANSCO as equity.
After the government took charge, 115 MW of solar power capacity has been added, Panneerselvam said. Applications for the erection of solar power plants of 5,366 MW capacity have been received and so far 13 developers have signed power purchase agreements for 156 MW.
Under the Financial Restructuring Plan, the state government has agreed to take over Rs 6,353 crore of TANGEDCO debt bonds floated in the year 2013-14. The government has already taken over Rs 1,000 crore of TANGEDCO bonds and also repaid the same during the current fiscal year. Another Rs 2,000 crore TANGEDCO’s debt bonds will be taken over by the Government during the year 2015-2016, added the minister.
