Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO), the State’s power generating and distributing utility, has estimated its revenue loss for 2022-23 at ₹7,825 crore, the lowest in the past five years.
The State’s energy distributor attributes the cut in revenue losses to a revised electricity tariff, which boosted its revenues, several cost-saving measures, and subsidies from the government.
In 2022-23, the Tamil Nadu government provided financial assistance in the form of a tariff subsidy of ₹13,784 crore, a loss funding grant of ₹12,315 crore, and ₹437 crore as other financial assistance to the power distributor.
TANGEDCO had reported a revenue loss of ₹11,955 crore in FY22, ₹13,407 crore in FY21, ₹11,965 crore in FY20, and ₹12,623 crore in FY19.
Cost-cutting measures
According to the latest Policy Note, TANGEDCO and Tamil Nadu Transmission Corporation Limited (TANTRANSCO), which is engaged in the transmission of electricity from the generating station to the distribution network, saved about ₹1,090 crore in FY23.
A number of measures were implemented to achieve this, including reducing O&M costs at thermal stations, coal handling charges, CTU charges, loan interest rates, effective coal transport from a loading port, increasing discharge quantities of coal, and selling fly ash.
TANGEDCO also garnered revenue of ₹191 crore in FY23 through the sale of fly ash.
Outstanding loans
Due to cumulative losses, TANGEDCO has availed loans from various financial institutions and banks which resulted in loans outstanding of about ₹1,44,000 crore as on March 31, 2023.
For repayment of high-cost loans to save interest burden, TANGEDCO is in the process of mobilising funds through the issue of bonds on a private placement basis to the tune of ₹7,605 crore at a lower coupon rate.
The State government has also provided a Government Guarantee of ₹6,000 crore for availing loan facilities from financial institutions.
5,000 MW of new wind power capacity
While making a slew of announcements for the energy department at the State Assembly on Wednesday, Tamil Nadu Minister for Electricity, Prohibition and Excise, V Senthil Balaji said the State government would be setting up about 5,000 MW of wind power projects with the participation of private sector.
The State government has planned to increase the share of renewable energy in total energy generation from about 21 per cent now to 50 per cent by 2030.