Chennai: After having joined the Uday scheme, Tamil Nadu government will take over loans of its power distribution firm, Tangedco, to the tune of Rs 30,420 crore.
While it will take over Rs 22, 815 crores being 75 per cent of Rs 30, 420 crore, the balance 25 per cent loans to the tune of Rs 7,605 crores will be retired by Tangedco by issue of bonds for which the Tamil Nadu Government will give necessary government guarantee.
“Savings on interest to Tangedco would be Rs 2,882 crore per annum. Besides, there will be savings of Rs 2,282 crore per annum in cash flow due to repayment of principal on takeover portion of loans by the Government. Further the remaining 25% loans of Rs 7,605 crore, for which bonds will be floated would result in an interest savings of '200 crore,” electricity minister P. Thangamani said on Monday.
As per Uday 75 per cent of Tangedco's distribution related loans as on 30.09.2015 have to be taken over by Government of Tamil Nadu. He also noted that Tangedco had already shown a substantial financial improvement in the financial year 2015-16 and brought down its losses by more than 50 per cent.
While Tangedco incurred a loss of Rs 12, 756 crore in 2014-15, it witnessed a substantial financial improvement in the previous financial year 2015-16 with a loss of Rs 5,786 crore thereby bringing down the losses by more than 50 per cent to Rs 6, 970 crore.
The financial improvement has been credited to various efficiency measures taken such as containing high cost power, rate negotiation with the power suppliers and fuel suppliers and replacement of static meters for accurate assessment.
Thangamani said the gap between ARR and ACS has considerably reduced from '1.66 per unit to '0.72 per unit even without joining the Uday scheme in 2015 to 2016.
