Despite being a turnaround case in power \u2014 from hugely deficit to surplus in the past eight years or so \u2014 Tamil Nadu\u2019s energy health is not at peak efficiency.<\/p>\n
According to a study released by ICRA at a conference on Tamil Nadu\u2019s emergence as a power sector leader by Madras Chamber of Commerce & Industry (MCCI), the state utility Tangedco has huge outstanding payments to power generating companies which is much higher compared to distribution companies (discoms) in other industrialised states such as Gujarat, Maharashtra and Karnataka.<\/p>\n
As of October 2020, TN\u2019s outstanding to power generating companies is Rs 18,520 crore, the study noted. In contrast, Gujarat discom\u2019s outstanding was Rs 448 crore, Maharashtra\u2019s Rs 7,358 crore and Karnataka\u2019s Rs 7,127 crore. However, the October outstanding was less than the Rs 19,034 crore due in September 2020.<\/p>\n
Tangedco\u2019s technical and commercial losses, at 17.47%, is higher than Gujarat\u2019s 13.98% and Maharashtra\u2019s 14.73%. Karnataka\u2019s 19.82% is higher than that of TN. \u201cA 5% reduction in technical and commercial losses of Tangedco may reduce current losses by approximately 25%,\u201d said Satyajit Suklabaidya, head-energy & natural resources, ICRA.<\/p>\n
The culprit in the case of Tamil Nadu is the free power concept mostly for agri consumers. Former power secretary R V Shahi said, \u201cThe health of the discom is an area of concern. If the government wishes to subsidise a certain section of consumers, then the extent of the subsidy should be paid to the distribution company so they run professionally and on commercial lines\u201d. Among the top 10 states having maximum annual losses in the electricity sector, Tamil Nadu is No. 1, he added. \u201cThis is due to a mismatch between cost of supply and revenue realised due to the irrational way of looking at the tariff.\u201d<\/p>\n
Also Tangedco\u2019s higher dues \u201care affecting cash flow of generating and transmission companies, making Tamil Nadu\u2019s power sector less attractive for investors who build this risk into their projects,\u201d added Suklabaidya.<\/p>\n","protected":false},"excerpt":{"rendered":"
Despite being a turnaround case in power \u2014 from hugely deficit to surplus in the past eight years or so \u2014 Tamil Nadu\u2019s energy health is not at peak efficiency. According to a study released by ICRA at a conference on Tamil Nadu\u2019s emergence as a power sector leader by Madras Chamber of Commerce & Industry (MCCI), the state utility Tangedco has huge outstanding payments to power generating companies which is much higher compared to distribution companies (discoms) in other industrialised states such as Gujarat, Maharashtra and Karnataka. As of October 2020, TN\u2019s outstanding to power generating companies is Rs […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[132],"tags":[],"class_list":["post-391551","post","type-post","status-publish","format-standard","hentry","category-power"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/391551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=391551"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/391551\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=391551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=391551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=391551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}