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Wednesday, Oct 01, 2008
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Tamil Nadu

Tamil Nadu

Tamil Nadu Electricity Board to be restructured

Special Correspondent

CHENNAI: The State government has planned to restructure the 51-year-old Tamil Nadu Electricity Board (TNEB) by splitting it into a holding company and two subsidiary companies.

On Friday, Electricity Minister Arcot N. Veeraswami will hold talks with labour unions in the TNEB at the Board’s headquarters.

“Chief Minister [M. Karunanidhi] has advised me to assure the unions during the talks that there will be no privatisation,” Mr Veeraswami told reporters at Athipattu (about 35 km north of the city), after reviewing the progress of the execution of the Vallur thermal power project and expansion projects of the North Chennai Thermal Power Station.

While one subsidiary company would handle transmission, another would take care of generation and distribution. The TNEB chairman would head the holding company and the subsidiaries.

[On Friday, the Centre intimated to the State its decision to extend the deadline for restructuring the Tamil Nadu Electricity Board by 15 days. It also advised the State to establish a transmission utility immediately and prepare a “road map” for further re-organisation of the Board.]

Noting that the latest deadline would expire by October 10, Mr Veeraswami, who explained the rationale behind the government’s plan, said this had been mandated under the 2003 Electricity Act. “Tamil Nadu and Kerala are the States which have not yet restructured their State Electricity Boards,” he said.

He said that his Kerala counterpart [A.K. Balan] spoke to him a few days ago and wanted to know the position of Tamil Nadu. At that time, he told the Kerala Minister that Tamil Nadu had sought some more time.

Asked whether the State would ask for further extension of the deadline, Mr Veeraswami replied that the Central government had now clearly conveyed to the State that no more extension would be given.

Power crisis

On the issue of tackling the problem of power shortage, the Electricity Minister said steps were being taken to offset the loss of wind energy. Captive power generation sets would produce 170 MW, including 100 MW from the sets that would run on furnace oil. Cogeneration in sugar mills would provide 200 MW and biomass power 55 MW. The Basin Bridge plant, maintained by the TNEB, would generate 90 MW, using diesel instead of naptha.

As for tapping 1000 MW from captive generation sets lying with industry, Mr Veeraswami said they could either supply the quantum of power to the TNEB or meet the requirements on their own. For implementing this plan, 1,200 kilolitres to 1,500 KL would be required every day. Oil companies were willing to provide diesel for such sets at a higher rate. Instead of Rs. 37 per litre, the companies were ready to sell the fuel at Rs. 47. A few days ago, the Chief Minister wrote to the Petroleum Minister Murli Deora to permit the sale of diesel at the lesser rate until summer.

The Union Minister for Communications A. Raja had taken up the matter with Mr Deora. The Principal Secretary (Energy) Smitha Nagaraj was in constant touch with petroleum officials.

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