The TVK government has placed TNEB tenders worth over `5,000 crore under review after detecting several irregularities, said Electricity Minister CTR Nirmal Kumar. In an interview with TNIE’s S Guruvanmikanathan, the minister said several policy reforms have already been introduced and their impact will be visible soon. Edited excerpts:
After you assumed charge, the Director (Technical) of TNGECL and the Chief Financial Controller were suspended over alleged tender irregularities. How many tenders floated during the previous regime have been cancelled so far? Have you found any other irregularities?
The main problem was with the estimation process, since tender values are based on estimates. Earlier, estimates were largely prepared using rates adopted by neighbouring states, which cannot be the sole basis for determining costs. To bring transparency, we have introduced a new estimation policy. Three independent teams will assess the value of any product before a tender is floated. One team will study prevailing market prices, another will evaluate manufacturers’ costs, and a third will compare rates adopted by utilities and public sector entities in other states. Based on these assessments, the board will take a final decision.
TNEB’s debt stands at Rs 2.5 lakh crore. What is your plan to reduce it?
Our first priority is to plug leakages and identify areas of unnecessary expenditure. We have noticed irregularities in several procurement activities and contracts. Earlier, TNEB’s annual revenue was around `60,000 crore against expenditure of about `70,000 crore. Following tariff revisions, revenue increased to over `95,000 crore. However, expenditure also rose sharply. We are analysing the reasons behind this increase.
The tariff hike has not translated into corresponding financial benefits for the utility. We have also found that large quantities of power were procured through short-term purchases. Officials have been now been instructed to focus on long-term procurement. We plan to procure nearly 1,500 MW through long-term arrangements. We have also found irregularities in approvals related to solar projects and contracts. Several policy reforms have already been introduced and their impact will be visible soon.
Why were substation connectivity approvals put on hold during the peak wind season? Have you found any irregularities?
We have not stopped any tenders. What we did was revise the estimation policy, which came into effect last week. With the new policy in place, tender approvals will continue. By introducing a transparent estimation mechanism, we have eliminated practices that allegedly led to commissions of 30% to 40% in some cases.
During a recent press meet, you said low-calorific-value coal was purchased at rates applicable to high-calorific-value coal during the previous regime. How many tonnes were procured in this manner?
In the power sector, electricity generation depends on the calorific value of coal. We observed lower levels of power generation despite large quantities of coal being consumed, which also resulted in increased ash generation. We are examining where the coal was procured from, the calorific value promised, the actual quality supplied and the moisture content. Samples have already been collected and detailed analysis is under way. Once the assessment is over, all findings, including details of any losses suffered by the utility, will be made public.
Has the inquiry identified those behind the hard disk theft at the TNEB headquarters?
The investigation is under way and I do not want to comment on specific findings at this stage, as it may affect the probe. On our part, we have instructed officials to secure all available records and hard disks. Steps have also been initiated to strengthen security through biometric access systems, improved CCTV surveillance and better monitoring of entry and exit points.
What is your vision for TNEB and its utilities over the next five years?
One of our key priorities is to strengthen the workforce. TNEB has a sanctioned strength of around 1.4 lakh employees, but only about 70,000 personnel are currently in service. We intend to fill vacancies in a phased manner over the next few years. We also plan to establish more than 200 substations and install additional transformers to meet rising demand. Alongside infrastructure development, we are committed to reducing leakages and improving operational efficiency across the utility.
