Tangedco is now facing huge financial problem
Posted on: 25/Jul/2019 10:10:00 AM
The news that has come out is Tangedco or Tamil Nadu Generation and Distribution Corporation is now facing huge financial crisis. It is well known that the power managers have been trying their best to improve the revenue situation for the financial year 2017-18. It is now said that their hopes have been dashed.
In 2016-17, the loss in revenue was Rs 4348 crores and now in 2017-18 loss has increased to Rs 7760 crores. Point is in 2015-16, the loss sustained was Rs 5787 crores.
In the month of January in 2017, central government UDAY scheme was signed with the state government is known. At that time, the power managers had hoped of atleast breaking even if not making profits for the financial year 2017-18. The point is the financial situation of Tangedco has gone from bad to worse now.
It has been pointed out by the power managers that the heavy loss is due to 100 units of free electricity and the banking of wind energy. There are many factors that are linked directly to the widening losses including the dip in the revenue from the sale of power against a spike in the cost of purchase of power. Information collected is wage agreement increase the expenditure by more than Rs 1852 crores.
Many factors were mentioned by a senior official of Tangedco for the power utility to suffer from huge financial losses. These were increase dependence for purchase of power from various sources of central generating stations, non-conventional energy, long-term/mid-term/short- term power purchases etc.
The main revenue earners for Tangedco have been high tension customers of factories and software industries are known. It is said that Tangedco has been able to improve its income from these 2 mentioned only slightly. Through the sale of power to high tension customers by selling 24,621 million units, the department of electricity had earned an amount of Rs 18,253 crores. The point is in 2016-17 the energy utility was able to earn amount of Rs 18,178 crores by supplying just 231`60 million units or MU.
The average rate of realisation had reduced by 43 paise from 7.84 per unit in 2016/17 to 7.41 per unit in 2017-18 is known. It is revealed that to earn higher revenue for 2017-18 Tangedco had to sell more units due to above said reason. For the financial year 2017-18, the energy utility sold 85.892 units as against 83,235 units in 2016-17.
Information is the revenue from the sale of the power has reduced. More number of high tension customers opting for captive power plants, wind energy and solar plants has been cited as the reason by the power managers. This has resulted in the reduction in the average rate of realisation.
