Tamil Nadu Electricity Regulatory Commission (TNERC) has determined the quantum of subsidy payable by the State government to the Tamil Nadu Generation & Distribution Corporation Ltd (TANGEDCO) for the financial year 2011-12 at Rs.2,071.41 crore.
An official release issued on Tuesday said that subsidy is payable to TANGEDCO if the State government decides to adopt a lower tariff than what was determined by TNERC.
For the current year, about 79 per cent of the subsidy totalling Rs.1,627.13 crore is earmarked for domestic consumers; 14 per cent totalling Rs.290.40 crore is meant for agricultural consumers and the balance of seven per cent totalling Rs.153.88 crore is allotted to hut consumers, handloom weavers, powerloom weavers, streetlights, public water supply and for places of public worship, the release said.
TNERC secretary R.V. Rajah said domestic consumers are partially subsidised in the range of 35 paise to Rs.1.70 per unit, whereas hut dwellers and agriculturists are fully subsidised.
The State government has to pay the subsidy in advance, failing which the tariff fixed by TNERC would be applicable.
The subsidy calculation is based on existing tariff, the release added.
