CHENNAI: By slashing coal imports and augmenting procurement from domestic market, Tamil Nadu has cut down its power sector losses by about 50 per cent. According to officials in the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), the losses have come down to `5,786 crore in 2015-16 from ` 12,756 crore in 2014-15.
Sources said the State was now more keen on securing from ‘competitive’ domestic markets like Talcher and IB Valley coalfields in Odisha, rather than depending on imports from Indonesia. “The difference between imports and procurement from domestic market is about `1,000 per tonne,” said an official seeking anonymity.
Citing the example of Tuticorin thermal plant, he said usually the state was procuring coal at the cost of `4,700 per metric tonne. Now it is being procured at `3,751 per metric tonne.
According to him, on an average, the state electricity board has been able to save `1,300 crore, which has helped in the reduction of losses. The state’s dependence on imports was too high a couple of years ago when it asked Ennore Port to increase its coal handling capacity to 34 million tonnes in the next five years. To a query on what would happen to these coal berths, the official said, “We are keeping our options open and this could be put to use when we have shortages in domestic market.”
Hopeful that the state electricity board would break even in a couple of years, he ruled out any power crisis by then. The state electricity board is also planning to decommission Ennore Thermal Power station and work is on to build a new thermal power project in Ennore Export Processing Zone.
On the preparedness for the monsoon, he said, “During last year’s floods, 13 substations were submerged. We plan to build retention walls to prevent seepage of water. Sandbags would also be placed around the retention walls apart from raising the height of pillar boxes.”