CM's powerful steps give TNEB new life - The New Indian Express

CM's powerful steps give TNEB new life

Published: 26th October 2013 08:27 AM

Last Updated: 26th October 2013 09:50 AM

Chief Minister J Jayalalithaa on Friday said the Tamil Nadu Electricity Board which was left by the previous DMK regime in a state of bankruptcy with an accumulated loss of Rs 40,375 crore has been restored by her government through consistent efforts and provision of unprecedented financial assistance.

Replying to a special mention raised in the State Assembly by the CPI and CPM on the problems faced by the MSME sector due to power shortage, the Chief Minister said during the DMK regime, the RBI had instructed banks and other lending agencies not to provide any loans to the TNEB, she said and added that she took it as a challenge and in a historic move, her government took over the entire financial burden and implemented a restructure plan to restore the TNEB to its original shape.

As per the financial restructure plan to restore the TNEB to its original position, the State government would bear 50 per cent of its short term loan burden. Bonds worth `6,353.49 crore have been issued to the banks and assured that the government would bear the principal and interest on this amount.

The Chief Minister said her government had given a guarantee for `22,700 crore to facilitate the TNEB to obtain loans and guaranteed for restructuring the loan of `5,951.43 crore.

She said, for the year 2011-12, her government had allotted `7,913.35 crore and financial aid to the TNEB.  During 2012-13, the aid was raised to `11,242 crore and for the current year, an all time high assistance of ` 12,197 crore has been allocated for the board. Of this, the government had disbursed in advance `4,749.90 crore. Besides `500 crore has been given as share capital.

The previous DMK regime had hoodwinked the people by saying that there was no power cut even though there was long hours of power cuts. “But now, we say there is power cut for two hours  in Chennai and three hours in other parts. The reality is that there has been no power cut on most of the days. Even this situation will improve very soon and there will be no power shortage in Tamil Nadu,” she said.

TANGEDCO Inks Deals

TANGEDCO has also signed long-term power purchase agreements for 15 years for a capacity of 1,208 mw in August. In all, due to the serious efforts taken by this government, the State will get 3,330 mw for 15 years. Of this, the maximum extent of power will be received from Chhattisgarh and Odisha, Chief Minister J Jayalalithaa said.

Following her reminders on the need for setting up of appropriate transmission lines to procure power from other States, now, works are on to erect transmission lines with a capacity of 765 kV between Solapur in Maharashtra and Raichur in Karnataka. It is expected to function from the first quarter of 2014.  With this facility, Tamil Nadu could receive power from other States.

Dig at UPA Govt

Chief Minister J Jayalalithaa on Friday took a dig at the Congress-led UPA government for failing to provide necessary clearances for a power project in Tuticorin.

Replying to a special mention in the State Assembly, the Chief Minister said the works on the thermal power project (500 mw x two), a joint venture of the Neyveli Lignite Corporation and TNEB in Tuticorin were progressing on a fast phase.  But the Congress-led government at the Centre had declined to reclassify the land under the ‘forest’ category, allocated for the project.

 

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(file photo / AP)
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