Centre’s pressure led to power tariff rise: Minister

‘The revision will help Tangedco out of the crisis’

Electricity Minister V. Senthilbalaji says the State had no option but to revise the tariff as Tangedco has been under extreme pressure, even to pay interest on loans. File photo | Photo Credit: B. Jothi Ramalingam

Minister for Electricity V. Senthilbalaji contended on Sunday that constant pressure from the Central government and the Central Electricity Regulatory Commission had forced the Tamil Nadu government to increase the power tariff.

He told reporters in Karur that the Centre’s lending agencies had written on several occasions to the State to increase the tariff.

Moreover, the Tamil Nadu Generation and Distribution Corporation (Tangedco) had been under extreme pressure even to pay interest on loans to the lending agencies because of its mounting losses. Hence, the State had no option but to revise the tariff.

To revitalise Tangedco, the State government had released ₹9,000 crore in 2021-22 and ₹3,000 crore during the current year, Mr. Senthilbalaji said. Tangedco had taken steps to improve its finances. The power tariff revision could help it manage the situation to an extent.

Consumers’ views

He said that due process was followed before the revision was made. The views of consumers were obtained through public hearings. Out of the 3.5 crore consumers, only 7,385 consumers submitted their views. Though Tangedco had been facing a huge loss, the tariff was raised nominally in public interest, he said.