Chennai: Power utility TANGEDCO in Tamil Nadu, which had a loss of Rs 13,985 crore in 2013-14, is all set to achieve break-even this fiscal, after a gap of nearly 15 years, due to various measures including additional generation capacity and procurement of cheaper electricity.
The losses of Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) came down steeply to Rs 3,783 crore in 2016-17 and the corporation would break-even this financial year, according to the policy note tabled in the state Assembly today by Electricity Minister P Thangamani.
Additional power generation capacities and power contracted through long and short term basis has enabled TANGEDCO to discontinue procurement of costly power based on naptha and low sulphur heavy stock fuels, it said.
With the synchronisation of Northern, Eastern and Western grids and Southern grid, TANGEDCO is able to avail “cheaper power from power exchange”.
TANGEDCO was also able to save approximately Rs 400 crore by coal management and import substitution. This was achieved in spite of additional expenditure of Rs 615 crore due to clean enery cess and increase in railway tariff by Centre.
“After a long gap of 15 years, it is expected that TANGEDCO will break even during the year 2017-18”, the note said.
Tamil Nadu would also continue to remain power surplus state in 2017-18 also with 8,663 MUs of unused electricity.
As per the Load Generation Balance Report of the Central Electricity Authority, the policy note said, Tamil Nadu will continue to be a power surplus in 2017-18 with a surplus of 8,663 MUs and with a peak surplus of 2,227 MW, it said.
On the power demand in the state, the policy note said it was about 13,750 MW to 14,250 MW while Chennai met an all time high demand of 3,332 MW on May 30, 2017.
The daily average state consumption increased from 200 MUs during 2011 to 320 million unit in 2017, it said.