CHENNAI: Come November 1 and the Tamil Nadu Electricity Board (TNEB) will officially split into TNEB Limited, Tamil Nadu Transmission Corporation Ltd (TANTRANSCO) and Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) in keeping with the provisions of the Electricity Act, 2003.
The State government has notified the Tamil Nadu Electricity (Reorganisation and Reforms) Transfer Scheme, 2010, marking the completion of a long drawn out administrative process that began with an 'in principle approval' by the State government in 2008.
With the new scheme, the TNEB will now get separated into distinctive corporate entities in accordance with the Central law which intends to better performance and profitability.
While TANGEDCO would focus on generation and distribution of power, TANTRANSCO is set to confine to transmission functions. The TNEB Ltd would primarily be an investment company and shall invest in companies in the field of electricity besides being the holding company of the two subsidiaries; TANGEDCO and TANTRANSCO.
According to the transfer scheme that has been notified, generation utility gets thermal, hydro, gas turbine, and wind generating stations and joint venture projects including like the TNEB NTPC Vallur (1500 mw) and TNEB BHEL Udangudi (1600 MW). It also is being vested with distribution assets including all 33 kV, 22 kV, 11 kV, LT lines.
All transmission lines having capacity to carry power at voltages of 66 kV and above with grid substation of various capacities with all equipment, including transformers have been transformed to TANTRANSCO.
The assets and liabilities of the generation and transmission companies have been demarcated. All personnel of the Board (excluding the chairman and the director) are being transferred on a provisional basis to the new entities subject to finalisation of the Employees Transfer Scheme by the State in consultation with chairman of TNEB Limited.
A tripartite agreement would be signed between the State government and transferee companies.
A prominent feature of the scheme is the division of assets and liabilities to the transmission and distribution companies besides TNEB Ltd, the holding company.