COIMBATORE: Law and Electricity Minister C T R Nirmal Kumar on Tuesday said the Tamil Nadu Electricity Board (TNEB) has no plans to privatise the distribution of electricity. He also said the electricity board is planning major reforms, including signing a memorandum of understanding with the IIT-Madras for research and development.
Interacting with industrialists in Coimbatore on Tuesday, he said, "The department has been facing pressure to privatise more than 50% of power distribution, which the central government had also pressed for during the previous regime. However, we do not have any ideas to privatise distribution."
The minister said the government is in the process of streamlining all policies and that a new policy for investors in the power sector would be announced in one or two weeks. He said, "This is for growth. The department turned into a disaster as the previous governments had approached it as a business." He also announced that at least 20,000 employees would be recruited this year, despite it doubling the expenses, in order to streamline basic works.
The minister said that lowering power purchase cost would enable the department to achieve financial self-sufficiency. "Then, we will have to streamline it little by little. But, at least we can address the pain points immediately," he said.
Further, he said that all policies favouring individuals have been removed. "Every year, we are investing huge amounts in purchasing materials in the EB department. If industries from Coimbatore are ready to supply them, the government will give the highest priority to our people," he said. Referring to the 2022 power tariff hike as a "big blunder", he said a new TNERC is being set up and the tariff would be changed thereafter.
'Environment protection over growth'
While interacting with the students at a private college in Coimbatore, the minister, for a question on sustainable development, responded that the state government is prioritising the environment over industrial growth, quoting the Parandur airport project. He said, "Waterbodies account for nearly 800-900 acres of the land used for the project. During a discussion, experts from the Airports Authority of India said that the land will not be suitable for a runway, as it is a waterbody. Only after that did we oppose the project. If we want to execute it, there are numerous alternative land areas available in the region. Environment is a priority, and we will have an alternative plan for growth."