Chennai: Debt ridden Tamil Nadu Generation and Distribution Corporation expecting a reduction in its revenue deficit by 25 per cent to Rs 6,374 crore in 2016-17 due to effective cost control measures.
“The revenue deficit for the current financial year is estimated to be reduced from Rs 8,542 crore in 2015-16 to Rs 6,374 crore because of effective cost control measures,” said electricity minister P. Thangamani. In the policy note for the energy department for 2016-17 tabled in the Assembly, the minister said that the revenue deficit of Tangedco is 2014-15 was Rs 12,756 crore.
“It has been reduced to Rs 8,542 crore during 2015-16, subsequent to the implementation of revenue augmentation and cost control measures by Tangedco,” he said.
The gap between average rate of realisation and average cost of supply has been reduced from '2.16 per unit in the year 2010-11 to '1.09 per unit in
2015-16, the policy note said, adding that the gap is expected to reduce to
74 paise in the current year.
According to Tangedco sources, the reduction in the revenue deficit was achieved by cutting down high cost power purchase and through other cost saving measures.
In order to improve the financial position of Tangedco, the policy note said that the state has continuously provided financial aid in the form of equity share capital, tariff subsidy, grants under financial restructuring plan, loan assistance etc in the last five years.
