Latest news with #TNPDC
The Hindu
27-04-2025
- Business
- The Hindu
Tamil Nadu government's financial aid to power utility has risen by around 300% in 10 years
The Tamil Nadu government's assistance to the State power utility in the form of electricity tariff subsidy and grants has witnessed an around 300% increase in 10 years. Since 2019-20, the rise was quite steep, registering around 137%. The reason for such a hike was the State government's decision to fully absorb the losses of the power utility since 2021-22. Ten years ago, when the government started covering the losses, the power utility in question was the Tamil Nadu Generation and Distribution Corporation (Tangedco). It was abolished last year. Now, the space is being occupied by the Tamil Nadu Power Distribution Corporation (TNPDC). The amount of subsidy and grants comes to about 30% of the total revenue of the power utility, an official says. During 2024-25, the government assistance was to the tune of around ₹31,850 crore. As part of the government's policy, free power supply is being provided to a host of consumers, including 2.38 crore domestic consumers (up to 100 units bimonthly) and 23.74 lakh three-phase agricultural connections, regardless of the level of consumption. To explain further, the subsidy for 100 units during 2023-24 was ₹5,283 crore. This is expected to go up to ₹7,752 crore this year (2025-26). For farmers alone, the subsidy amount will be ₹8,186 crore this year. For all categories, the tariff subsidy is estimated to be around ₹16,275 crore. Even though the authorities have been making efforts for the reduction of aggregate technical and commercial (AT&C) losses of the power utility, the TNPDC was found to have experienced a rise in the losses from 10.31% during 2022-23 to 12.92% during 2023-24. Besides, it is having substantial regulatory assets, according to an assessment commissioned by the Power Finance Corporation (PFC). [Regulatory assets, which are akin to deferred income, cover previously-incurred losses that can be recovered from consumers in future subject to the regulatory body's approval.] This explains the rating of C- given to the TNPDC in the PFC's 13th Annual Integrated Rating and Ranking of Power Distribution Utilities. At the same time, the study has mentioned that the discom bridged the gap between the average cost of supply (ACS) and average revenue realised (ARR) by ₹0.78 per unit in the given two years (2022-23 and 2023-24). The effective gap was ₹0.11 per unit during 2023-24 as ACS was ₹9.04 against ARR's ₹8.93. A huge financial outgo from the State government to the power utility is one of the key factors for its continued relatively-high revenue and fiscal deficits.
The Hindu
22-04-2025
- General
- The Hindu
Erection of two new HT towers begins
Tamil Nadu Transmission Corporation Ltd (Tantransco) has begun work on a project to replace two high-tension power transmission towers that collapsed in Kollidam River last year. Tamil Nadu Power and Distribution Corporation (TNPDC) distributes power to Thiruvanaikoil and a few areas of Srirangam by transmitting power to Thiruvanaikoil substation through high tension lines from Thatchankurichi via Srirangam substation. However, it has been facing issues in power supply since the collapse of two HT transmission towers on the Kollidam riverbed due to heavy water flow near Alagiripuram in Thiruvanaikoil. Since then, power supply to Thiruvanaikoil is being managed by tapping power from other lines in Samayapuram and other places. But TNPDC faces a tough task in ensuring power supply to Thiruvanaikoil and its neighbouring areas. The people of Thiruvanaikoil encounter frequent disruptions in power supply and power fluctuations. The collapse of the HT tower was cited as the main reason for the disruptions in power supply. To solve the issue, Tantransco came out with a proposal to replace the two HT towers a few months ago. The Detailed Project Report (DPR) has been approved and the project has begun. A senior official of Tantransco told The Hindu that ₹3 crore had been sanctioned for installing two HT towers on the riverbed of the Kollidam near Alagiripuram. Considering the trouble in ensuring power supply to the affected people, it had been decided to implement the project on a war footing. Preliminary works had started and all materials needed for erecting the towers mobilised. A team of 30 specially skilled personnel would be engaged and the towers would be installed in a month. The official added that the locations of the new HT towers were identified based on a soil study by a civil engineering team of National Institute of Technology-Tiruchi. Its recommendations would be followed while undertaking pile foundation, tower erection and other works. The pile foundation was designed in a way to withstand heavy discharge of flow in Kollidam River. The power fluctuation and disruption in Thiruvanaikoil would be solved once the erection of towers.
