Tangedco, Tantransco saved Rs 1,090 crores in 2022-23: Electricity minister Senthil Balaji

Electricity minister V Senthil Balaji said Tangedco and Tantransco were able to save Rs 1,090 crore in 2022-23 by implementing cost-cutting measures. 
Image used for representational purpose only. (File photo)
Image used for representational purpose only. (File photo)

CHENNAI:  Electricity minister V Senthil Balaji said Tangedco and Tantransco were able to save Rs 1,090 crore in 2022-23 by implementing cost-cutting measures.  “This included reducing the operation and maintenance costs in thermal stations, coal handling charges, loan interest rates, and through the sale of fly ash and power swapping arrangements. These savings were achieved through consistent efforts to reduce costs,” he said.

During the assembly session’s debate on demand, the minister also added Tangedco had taken various progressive measures to improve the sustained utilisation of fly ash by awarding long-term contracts and realized revenue of Rs 190.80 crore which is 105% more than the revenue achieved in the last financial year 2020-21.

“Through the swap arrangements (exchange power between states), Tangedco tied up with Madhya Pradesh and Rajasthan to meet the morning and evening peak demand and avoided expenditure on peak hour purchase at a cost of Rs 10 per unit” the minister said.

Senthil Balaji also highlighted that the power utility has been continuously incurring revenue losses mainly due to the gap between average revenue realization and the average cost of supply. As on March 31, 2023, Tangedco’s outstanding loans stood at Rs 1.44 lakh crore, and Tantransco’s outstanding was Rs 24,211.64 crore. To improve the financial position of the power utility, the state government is continuously providing financial assistance in the form of equity share capital, tariff subsidy, grants towards funding of loss, and so on, the minister added.

In the agricultural sector, the minister revealed within two years, the state government provided 1.50 lakh free power connections to farmers benefitting 2,99,173 acres of land across the state. In the current financial year (2023-24), a total of 50,000 connections are to be provided additionally.

The minister also assured the assembly that wage revisions for the power utility employees will be settled, and smart meters will be installed for all consumers as early as possible. For this, the detailed project report was in progress, and the tender would soon be floated.

Record: TN consumes 398mn units power in a day 
Chennai: The state’s daily power consumption hit a record high, reaching 397.785 million units on Tuesday. Electricity Minister, V Senthil Balaji, confirmed the milestone via a tweet, stating there were no power outages reported throughout the state on Tuesday. The earlier high was 388.078 million units, recorded on April 29, 2022. A senior official from the Tangedco said they had anticipated a gradual increase in power demand during the summer months. “Necessary steps were already taken to meet the demand,” he added.

Electricity announcements

  • Free electricity connections for 50,000 farmers
  • 72 new substations to be built across the state
  • Main Load Dispatch Centre (MLDC) that is operated on the ground floor of a dilapidated building to be modernised at an estimated cost of Rs 4 crore
  • Wind power projects with the capacity of 5000 MW to be installed
  • Gas-insulated substation to be set up in Guindy
  • Procuring drones with high-power cameras for identifying hot spots and weak joints in distribution lines
  • The overhead cables in traditional chariot streets in Tirunelveli, Avinashi, Coimbatore, Srirangam, Thiruparankundram, Tiruchengode, Karur and Kancheepuram will be made into underground cables
  • 100 KW solar-based EV charging stations to be set up at a cost of Rs 1.5 crore in two locations

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