TANGEDCO’s finances are under stress as the previous government and the Tamil Nadu Electricity Regulatory Commission (TNERC) have not allowed them to revise their tariffs for the past seven years
TANGEDCO reduced its loss for the fiscal year ending March 2020 by ₹ 659 crore compared to the previous year. While the financial year ending March 2019 saw the total loss amount to ₹ 12,623 crore, a year later the loss fell to ₹ 11,964 crore.
The loss was mostly reduced due to improved revenue collection, which increased 2.45% in the year ending March 31, 2020 compared to the previous year. But the discom has a total debt of ₹ 1.07 lakh crore on which interest is paid and, according to the sources, the majority of the debt is owed to power projects that are developing in the state.
TANGEDCO experienced a record loss in 2013-14 when the total recorded loss was ₹ 13,000 crore and since then it declined until 2018-19 and then started to rise again and hit ₹ 12,000 crore in 2018-19 .
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TANGEDCO’s finances are under stress due to the fact that the previous government and the Tamil Nadu Electricity Regulatory Commission (TNERC) did not revise the tariff in the past seven years, while all other discounts owned government in other states have revised the tariff at least once in the past seven years. .
While the main tariff revenues remain more or less the same, the expenses have increased several times. The price of coal has increased several times and beyond that a tax has been levied to combat pollution.
Electricity purchases increased by ₹ 2,967 crore compared to the previous year, but at the same time, the cost of generating electricity decreased by ₹ 1,265 crore. This shows that TANGEDCO provided 24 hour power by purchasing more electricity than generating from its own thermal units.
TANGEDCO’s total debt is a staggering ₹ 1.07 lakh crore, which was the debt of the government of Tamil Nadu ten years ago. The discord is struggling to make ends meet with several crores waiting for thermal and renewable energy generators.
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With the state government refusing to wave at the disappointment of presenting its revised tariff report, the company is on its own seeking to save up to 1,000 crore to reduce the rate increase.
The discom started selling fly ash from its thermal unit premises, earning as much as ₹ 500 crore. Fly ash is sold to all cement companies for a cost, except government-owned cement companies in Tamil Nadu for which it is given free.
He asked all thermal units to buy repaired parts at the same cost, saving as much as ₹ 100 crore every year. Despite all these efforts, unless the tariff increases, the disappointment risks facing more financial problems. For this reason, other income increased by ₹ 2,160 crore.