Chennai: In a bid to put an end to Opposition parties’ speculation over joining the Centre’s Uday scheme, Tamil Nadu Generation and Distribution Corporation has posted a question and answer format statement on its website making it clear that there would not be any hike in power tariff affecting public. Also free power supply to farmers, huts and weavers will continue.
After opposing scheme, the state government signed Uday that aimed at achieving operational and financial turnaround of power distribution company last week. DMK working president M. K. Stalin wanted to know why the government joined the scheme opposed by Jayalalithaa when she was alivee. He also wanted to know whether the free power supply to farmers and weavers would be continued or not.
In its website post titled “About Uday Scheme”, Tangedco said the state government signed the tripartite agreement with the Centre only after it agreed to former chief minister’s demand for scrapping the condition for raising the power tariff every three months.
The Tangedco’s total outstanding loan as on September 30, 2015, under generation and distribution heads was Rs.81,312 crore. The state government would take over 75 per cent of Rs 30,420 crore under distribution head that is Rs 22,815 crore and the rest of the loan amount will be retired by the utility through issue of bonds. “With the saving on the interest and principal repayment of loan taken over by the state government through Uday scheme, Tangedco’s revenue deficit will come down to Rs 1500 crore in 2017-18 and will earn profit in the next fiscal. Hence, there will not be any hike in power tariff affecting the public,” it said.
The utility assured that no meters will be fixed for agricultural and hut consumers and domestic consumers will continue to get 100 units free power. “The handloom and powerloom weavers will continue to get free power of 200 units and 750 units,” it said, adding that under the scheme, all consumers using over 200 units, except farmers and hut, would be provided with smart meters.
