ENERGY DEPARTMENT

POLICY NOTE

2013-14

DEMAND NO. 14

Thiru. Natham R.Viswanathan Minister for Electricity, Prohibition and

Excise

INDEX

Sl. No.

Subject

Page

1. Introduction

1-3

2. TNEB Limited Tamil Nadu Generation and Distribution Corporation Limited Tamil Nadu Transmission Corporation Limited

4-35

3. Tamil Nadu Energy Development Agency

36-50

4. Electrical Inspectorate Department 51-60

5. Tamil Nadu Power Finance and Infrastructure Development Corporation Limited

61-66

6.

Conclusion 67-69

7. Charts and Photographs 70-84

ENERGY DEPARTMENT

Introduction

Energy security and environmental

sustainability are vital to our future. Energy

security is very important for economic growth.

Renewable energy sources are essential in view of

the depleting nature of conventional energy

resources.

The Honble Chief Minister of Tamil Nadu

released the document Vision 2023 on

22.03.2012. This document lays the road map for

development of major infrastructure, including

energy security for the State. The Vision 2023

document envisages a massive public and private

investment of Rs. 4,50,000 crores in the energy

sector for the State. The investment targets

expeditious addition to conventional & non-

conventional power generation capacity,

continued investment for retaining the edge in

development of clean energy and modernization

of Transmission and Distribution Infrastructure.

2

The Honble Chief Minister has announced

an innovative Solar Energy Policy in October

2012. The vision is to develop Tamil Nadu a world

leader in Solar Energy. Through this policy the

Government intends to make generation and use

of solar energy a peoples movement as was done

for Rain Water Harvesting.

The policy note covers the details of

programmes and policies of the Government,

relating to the power sector in Tamil Nadu.

The following organisations are under the

Administrative Control of Energy Department:

I. Erstwhile Tamil Nadu Electricity Board

which has been reorganized as,

i. TNEB Limited

ii. Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO),

3

iii. Tamil Nadu Transmission Corporation Limited (TANTRANSCO) and

II. Tamil Nadu Energy Development Agency

(TEDA)

III. Chief Electrical Inspector to Government

(CEIG)

IV. Tamil Nadu Power Finance and Infrastructure Development Corporation Limited (TNPFC)

4

TNEB Limited

Tamil Nadu Generation and Distribution

Corporation Limited and

Tamil Nadu Transmission Corporation Limited

Tamil Nadu Electricity Board (TNEB) was

formed on July 1, 1957 under section 54 of the

Electricity (Supply) Act 1948 in the state of Tamil

Nadu as a vertically integrated utility responsible

for power generation, transmission and

distribution. The electricity network has since

been extended to all villages and towns

throughout the state. TNEB was restructured on

November 1, 2010 into TNEB Limited; Tamil Nadu

Generation and Distribution Corporation Limited

(TANGEDCO); and Tamil Nadu Transmission

Corporation Limited (TANTRANSCO).

TANGEDCO has been entrusted with the

responsibility of the state sector generation and

distribution functions in Tamil Nadu. As on March

31, 2013, it supplies electricity to 244 lakhs

consumers in the state. Per capita consumption of

5

electricity in Tamil Nadu is estimated as 1065

units per annum which is much higher than the

national average of 734 units per annum.

1.1.0 GENERATION

1.1.1 Installed capacity:

The installed capacity of conventional

energy sources of Tamil Nadu Generation and

Distribution Corporation Limited is 10515.34 MW

as on 31.03.2013 which includes TANGEDCOs

Hydro (2237.4 MW), Thermal (2970 MW), Gas

Stations (515.88 MW), share from Central

Generating Stations (3520MW), Private Power

Projects (1154.16 MW), External Assistance

(50 MW) and others ( 67.9 MW).

The installed capacity of non conventional

energy sources as on 31.03.2013 (infirm power)

is 7999.025 MW which includes wind generation

(7145.225 MW), Solar (17 MW), Biomass (177.4

MW), Co-generation plants (659.4 MW). Tamil

Nadu accounts for 39% of wind power generation

in India.

6

1.1.2 Present Status of Demand Supply:

The present demand of power in the state is

around 12,000MW. The average availability of

power from the existing conventional and non

conventional energy sources is about 8000 MW.

At present this deficit is managed through power

purchase and Restriction and Control measures.

TANGEDCO is taking several steps to bridge the

gap between demand and supply to provide

uninterrupted power supply to the consumers.

1.1.3 Measures taken to bridge the present demand-supply gap of power:

All the generating stations are run

efficiently to ensure maximum generation of

power. The Plant Load Factor (PLF) for our

thermal power stations is one of the highest in

the country as detailed below:-

7

Name of the Station

Capacity Plant Load Factor during

2012-13

North Chennai Thermal Power Station

3X210 = 630 MW 91.68%

Tuticorin Thermal Power Station

5X210 = 1050 MW 90.04 %

Mettur Thermal Power Station

4X210 = 840 MW 84.26 %

Hydro Electric Power is being utilized to

meet the peak demand in the morning and

evening.

There are four Gas Turbine Power Stations

with a total installed capacity of 515.88 MW in

TANGEDCO. Kuttalam Gas Turbine Station under

repair has also been brought back to service from

21.2.2013. All the Gas Turbine Power Stations

are running efficiently to ensure maximum

generation of power.

8

1.1.4 Status of Major On-going Projects:

TANGEDCO is taking all efforts to

commission the ongoing projects at the earliest.

1.1.4.1 Thermal Projects:

1. TNEB-NTPC Joint Venture project at Vallur:

There are three units, each having a

capacity of 500 MW. Unit 1 has been

commissioned on 29.11.2012. In each unit

Tamil Nadus share is 375 MW out of total

capacity of 500 MW. The second unit has

commenced trial production on 28.02.2013.

The third unit is expected to be commissioned

in October 2013.

2. Mettur Thermal Power Project- Stage III:

This unit with a capacity of 600 MW has

commenced trial production of power in

November 2012. The unit is generating power

consistently from Feburary 2013.

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3. North Chennai Thermal Power Station

Stage II: NCTPP stage II project consists of two

units each of 600 MW capacity. The unit 2

has commenced trial production of power. The

unit 1 is expected to commence generation in

May 2013.

4. TNEB-NLC Joint Venture Project at Tuticorin:

This project is being executed by a Joint

Venture between NLC and TANGEDCO. The

project comprises of two units each of 500 MW

capacity. Total share of Tamil Nadu from this is

387 MW. Units 1 and 2 are expected to be

commissioned in December 2013 and March

2014 respectively.

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1.1.4.2 Hydro projects:

Bhavani Kattalai Barrage III (2 X15 MW),

Bhavani Barrage I (2x5 MW), Bhavani Barrage II

(2 x 5 MW), Periyar Vaigai III (2 X 2 MW) and

PeriyarVaigai IV (2X1.25 MW) projects totaling

56.5 MW of hydro power generation are under

execution. These projects are expected to be

commissioned in the year 2013.

1.1.4.3 Co-Generation projects:

TANGEDCO has taken up establishment of

12 cogeneration plants in cooperative and public

sector sugar mills along with sugar mill

modernization in Tamil Nadu at a total cost of

Rs 1241.15 crores. The total capacity of Co-

generation Projects is 183 MW. These projects

will have 123 MW of surplus power which can be

fed to the grid. These projects are expected to

be commissioned during this year.

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1.1.5 Power Purchase:

To meet demand and supply gap

TANGEDCO is procuring power from existing

generators through open tender. Bids for

procurement of power for less than one year

tenure are termed as short term purchase, 1-7

years tenure are termed as medium term

purchase and more than 7 years are termed as

long term purchase.

Under short term around 900 MW is being

procured from local generators in Tamil Nadu for

the year 2013-14. Agreements have been signed

for procurement of 500 MW of power from other

states from June 2013 under medium term

purchase through case 1 bidding. There is

transmission constraint for transfer of power to

southern grid from rest of the country. Out of

1100 MW contracted power on short term basis

from other states only limited quantity could be

availed due to corridor constraints. TANGEDCO

secured about 500MW transmission capacity from

January 2013 to April 2013 by participating in the

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e-bidding. This has helped TANGEDCO to avail

power already booked. A new line is being

commissioned between Sholapur in Maharashtra

and Raichur in Karnataka by Power Grid

Corporation of India Limited (PGCIL). After

completion of this link in the year 2014 surplus

power from other region in the country can be

easily procured. 85% power shortage is proposed

to be bridged by long term purchase of 1000 MW

power for a period of 15 years from October

2013. Further it is proposed to procure power on

long term basis depending upon the prevailing

shortage.

1.1.6 New Projects

The document Vision Tamil Nadu 2023

released by the Honble Chief Minister on

22.3.2012 envisages a massive public and private

investment of Rs. 4,50,000 crores in the Energy

Sector for the State. The major share of the

investments amounting to Rs. 2,30,000 crores

will be utilized to augment the power generation

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capacity in the State and the following new

projects are proposed to be taken up for

construction.

1. Ennore Thermal Power Station Expansion (1 x 660 MW):

This is the first project of TANGEDCO

to be commissioned with super critical thermal

technology. The total project cost is Rs. 4000

crores. The bids for the project have been

received. The project will be completed in the

year 2016.

2. Ennore SEZ Thermal Power Project (2X660 MW):

This project consists of 2 units each of

660 MW capacity with super critical thermal

technology. The cost of the project is

Rs. 8000 crores. The tender for construction

of this project has been invited. This project

is likely to be commissioned by the year

2016.

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3. Udangudi Thermal Power Project (2 x 660 MW):

The cost of the project including the coal

jetty is Rs. 9000 crores. Honble Chief Minister

of Tamil Nadu has ordered development of

Udangudi Super Critical Power Project by

TANGEDCO itself. Tender has been invited and

the project will be commissioned by 2016.

4. Uppur Thermal Power Project (2 x 800 MW):

The site is located in Uppur Village at a

distance of 55km from Ramanathapuram. The

cost of the project is Rs 9600 crores. This

project is being developed with private sector

participation through tariff based bidding.

5. North Chennai Thermal Power Project Stage III (1X800 MW):

Various studies for obtaining

environmental clearance for this project of

800 MW capacity are underway.

15

6. Ennore Thermal Power Station Replacement (1 x 660 MW):

Government of Tamil Nadu has proposed

to take up the replacement of old 5 units of

ETPS (450 MW) through a new single 660MW

super critical unit. Pre-feasibility report has

been prepared and the project development

activities are under progress.

7. Udangudi Expansion Project (1 x 800 MW):

The project cost is Rs. 4800 crores. Pre-

Feasibility report has been prepared. Project

development activities are under progress.

8. Tuticorin Thermal Power Project Stage IV (1 x 800 MW):

The cost of the project with a capacity of

800 MW is Rs. 4800 crores. Feasibility

report has been prepared. Environmental

clearance is being pursued.

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9. Cheyyur Ultra Mega power project of 4000 MW:

The project cost is Rs. 18000 crores.

Tamil Nadu will get 1600 MW power from the

project as its share. As this is an Ultra mega

project, this project is developed by

Government of India with private sector

participation. Environmental clearance for this

project is under progress. The plant is

expected to be commissioned in the year

2018-19.

10. Pithead power Plant in Chattisgarh (4000 MW):

A coal block in the State of Chhattisgarh

has been allocated to Tamil Nadu Generation

and Distribution Corporation Limited jointly

with Maharashtra State Mining Corporation for

captive mining. The quantity of coal will be

shared between Tamil Nadu and Maharashtra

in the ratio 77:23. A joint venture company

MahaTamil Collieries Ltd has been formed. A

pithead power station utilizing Tamil Nadu

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Generation and Distribution Corporation

Limiteds share of coal is being developed.

M/s. Lanco Infratech has been selected by

competitive bidding as the Mine Developer

and Operator (MDO). They have proposed to

establish a 4000 MW power plant near the

pithead. The share of power from this plant

for Tamil Nadu is upto 2500 MW. Mine

development activities are under progress.

11. Kundah Pumped Storage Hydro Electric Project/ Nilgiris District (4X125 MW):

Kundah hydro electric project is the

second pumped storage scheme in Tamil Nadu

after Kadamparai pumped storage scheme.

This plant will operate as generator during

peak hours and run under pumping mode

during off peak hours. At present

pre-development works are underway for the

phase I (1 x 125) project.

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12. Sillahala Pumped Storage Hydro Electric Project/ Nilgiris District (4X500 MW):

It is proposed to construct at Sillahala,

Nilgiris District a pumped storage hydro electric

project with a peak capacity of 2000 MW similar

to the existing Kadamparai pumped storage

scheme (4X100 MW). This scheme is proposed to

be executed in two phases with a estimated cost

of Rs. 7000 Crores. This scheme is to be

completed within a period of 8 to 10 years.

1.1.7 Coal:

The total quantity of coal required for

TANGEDCOs existing four thermal power stations

is 16 Million Tonnes Per Annum (MTPA).

TANGEDCO has proposed capacity addition of

NCTPP ( 2 x 600 MW) and MTPP (1 x 600 MW).

The aggregate annual coal requirement including

these units is 25 MTPA. TANGEDCO has executed

Fuel Supply Agreement (FSA) with Eastern

Coalfields Ltd (ECL) for 1.425 MTPA of coal and

with Mahanadi Coalfields Ltd (MCL) for 12.075

MTPA of coal totaling to 13.5 MTPA for the

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existing Power Stations. The total coal

requirements for the NCTPP (2 units) and MTPP

(1 unit) is 9.00 MTPA. But only 6.945 MTPA is

expected to be provided by MCL.

Further the FSA provides for only 85 % of

requirement of the generation as Annual

Contracted Quantity (ACQ). The actual realization

is around 85% of the Annual Contracted Quantity

(ACQ) and hence the actual coal supplied by coal

companies is equal to 72% of the coal required

for TANGEDCO power stations. Also the

percentage realization of coal with respect to FSA

quantity is decreasing year by year. Therefore

TANGEDCO is constrained to meet the balance

requirement of coal by imports.

1.1.8 Solar Power:

The solar policy mandates solar purchase

obligation of 6 % from the year 2014 for HT and

LT commercial consumers. To meet this

requirement TANGEDCO has proposed to procure

solar power through competitive bidding. Thirty

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two developers have been selected and they will

establish solar power plants throughout the State

with a total capacity of 260 MW.

1.1.9 Renovation, Modernization works in Power Stations:

Renovation, Modernisation and Uprating

(RMU) works of Periyar Power House from

4x35 MW to 4x42 MW at a cost of Rs. 161.18

crores have been taken up. Out of the four units,

RMU works in units 1 and 2 have been completed

successfully and now they are running with up-

rated capacity of 42 MW. At present, RMU works

in unit 3 are under progress and are expected to

be completed during this year. RMU works of unit

4 will be completed in 2015.

1.2.0 TRANSMISSION

The transmission Network comprises of a

total no. of 1320 substations including 14 nos.

400 kV substations, 70 nos. 230 kV substations,

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703 nos. 110 kV substations, 10 nos. 66 kV

substations and 523 nos. 33 kV substations as on

31.03.2012. The associated EHT (Extra High

Tension) lines run to 24497 Ckt.Kms. The

transmission network in the state is to be

strengthened to match with the addition in

generation capacity and the load growth. During

the year 2012-13, 31 nos. substations have been

commissioned; an additional 67 power

transformers and 46 sets of capacitor banks have

been energized in various substations to meet the

additional load and avoid low voltage complaints.

1.2.1 Associated transmission system for

ongoing power projects:

To evacuate power from ongoing projects of

North Chennai Thermal power project (1200 MW),

NTECL Vallur JV project (1500 MW), Mettur

Thermal Power project (600 MW), the works of

associate transmission system have been taken

up. One 400kV DC Line from MTPS Stage-III to

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Arasur (Coimbatore) substation for a distance of

220 Ckt Kms at a cost of Rs. 176.30 crores,

400kV Multi Circuit Line from NCTPS Stage-II to

Alamathy for a distance of 136 Ckt Km at a total

cost of Rs. 149.68 crores and 400kV DC Line

from NCTPS Stage-II to Vallur JV project for a

distance of 7.1 Ckt Km costing Rs. 5.33 crores

have been successfully completed and energized.

Difficulty was experienced in obtaining right of

way to erect the transmission towers and lines.

This was overcome successfully by obtaining

orders from courts. The work of erection of

400kV Multi Circuit Line of 194 Ckt. Km from

Alamathy to Sunguvarchatram at a cost of

Rs. 246.90 crores is still under progress. This will

be completed during this year.

1.2.2 Transmission schemes for wind power

evacuation:

To evacuate power from the wind mills in

Kanyakumari and Tirunelveli areas, work for

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establishing a main back bone network consisting

of 1488 Ckt., Kms of 400kV DC Line at a cost of

Rs. 2071.21 crores has been awarded and is

under progress. The network will link substations,

at Kayathar (New SS) Karaikudi (existing PGCIL

SS) Pugalur (existing PGCIL SS)

Sholinganallur (New SS - Ottiyambakkam) for

effectively transmitting wind power across the

State.

It is proposed to construct three 400kV

substations (Thappagundu in Theni District and

Rasipalayam and Aanaikadavu in Coimbatore

District) along with 400 kV., 788 circuit Kms. of

EHT Lines to evacuate the wind power generated

in Theni, Udumalaipet and Coimbatore Districts.

1.2.3 Schemes to increase the power exchange within the southern states: It is proposed to erect a 765 kV substation

at Thiruvalam in Vellore District by PGCIL to

increase the power exchange within the southern

states. Using this infrastructure and to import

24

power from other states it is proposed to

construct a new 400kV substation along with the

Transmission lines at a cost of Rs. 1000 crores

during this year.

1.2.4 Schemes to strengthen the Transmission Infrastructure : By strengthening the Transmission Network

in Tamil Nadu and Regulating the power

exchange, it is proposed to construct new five

400 kV substations, fourteen 230 kV substations

along with Transmission Lines with the aid of

Japanese International Cooperation Agency

(JICA).

Totally this year it is proposed to establish

10 nos. 400 kV substations, 16 nos. 230 kV

substations, 19 nos. 110kV substations and

11 nos. 33 kv substations. Thus 56 substations

are proposed to be established during this year.

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1.3.0 DISTRIBUTION

The existing Distribution network comprises

of 2.21 lakhs distribution Transformers, 5.78 lakh

kms LT lines and 1.58 lakh Ckt.kms HT lines. To

provide reliable and quality power supply to

satisfy the ever increasing consumer needs,

TANGEDCO has planned to strengthen the

existing distribution infrastructure. During the

year 2012-13, eleven 33 kV substations have

been erected, 8367 nos distribution transformers,

10,773 kms LT lines and 2485 Ckt.kms HT lines

have been energized. In spite of severe power

crisis, TANGEDCO had effected new service

connections to 12.13 lakhs new consumers. In

order to eliminate the obstacles faced by the

consumers and ensuing reliable power it is

proposed to procure 20,000 Distribution

Transformers. Further it is proposed to erect

15,000 Kms of HT and LT Lines during this year.

26

Category wise total number of consumers being

served in the State is as follows:

Category Total No. of Consumers in

Lakhs Domestic 162.98

Agriculture 20.35

Commercial 32.59

Industrial 5.77

Others 22.23

Total 243.92

TANGEDCO has also proposed to convert

the over head lines to underground cables in the

coastal areas of Nagapattinam and Cuddalore

districts. Efforts are being taken to obtain

financial assistance for above scheme from the

World Bank.

1.3.1 Rural Electrification:

As per census 2011, there are 15,979

villages in Tamil Nadu. Out of this there are

15,243 Revenue villages and 736 Reserve forest

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villages. 100% electrification has been completed

in Tamil Nadu as per the guidelines prescribed by

the Central Government. However 98 habitations

in remote forest area are yet to be covered with

electricity supply. For this isolated hamlets in the

villages situated in the forest and hilly areas,

electrification using solar power is being

undertaken.

1.3.2 Restructured Accelerated Power Development And Reforms Programme (RAPDRP)

The objective of RAPDRP is to provide

reliable power supply to consumers and bring

Aggregate Technical and Commercial (AT&C)

losses below 15%. The towns and cities with

more than 30000 population as per 2001 census

are covered under the project. The scheme has

two parts. Part-A includes projects for

establishing baseline data acquisition IT

application for energy accounting and IT based

consumer service centres. The part A works are

under implementation in 110 towns of Tamil Nadu

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at a total cost of Rs. 417 crores. The works

include erection of a modern data centre with

software for online consumer facilitation and work

flow modules, erection of remote monitoring

meters in distribution transformers and GIS

consumer indexing and electrical assets mapping

in 110 towns. In Chennai, Madurai, Coimbatore,

Tiruchy, Salem, Tirunelveli and Tiruppur towns

Supervisory Control and Data Acquisition

(SCADA) and Distribution Management System

(DMS) works are under progress at a total cost of

Rs 182.17 crores.

The Part B scheme work consists of

distribution strengthening to reduce the AT & C

losses to less than 15%. Part-B schemes for 87

towns have been sanctioned for a total of Rs.

3279.56 crores.

1.3.3 Energy conservation measures:

1.3.3.1 Theft of Energy:

TANGEDCO has formed 40 teams of Ex-

servicemen, 17 enforcement squads and one

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flying squad for inspection and detection of theft

of energy in Electricity Distribution Circles.

During this year i.e. 2012-13, Ex servicemen

teams have detected 18,175 Nos. of power theft

cases and have levied Rs. 37.57 crores towards

provisional assessment and compounding

charges. Similarly enforcement squads have

detected 8,224 cases of theft of energy and

have levied Rs. 56.89 crores towards provisional

assessment and compounding charges.

Intelligence wing has also been formed to study

and analyze electronic data from the meters for

the HT consumers and detect theft of energy

cases in HT consumers. The Intelligence wing

from the date of formation has detected and

levied penalties for Rs. 2.98 crores.

1.3.3.2 Distribution of Compact Fluorescent Lamps (CFLs)

Financial assistance of Rs. 14.63 crores has

been sanctioned by Government of Tamil Nadu

for the implementation of this scheme in hut

services in Tamil Nadu. It is proposed to issue

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CFLs to hut service connections during 2013.

Similarly for metered domestic consumers a

scheme for distribution of subsidized CFL is being

taken up in phase-1 in Kanyakumari and

Villupuram districts. As a measure of energy

conservation in agricultural sector, TANGEDCO is

effecting agricultural service connections using

star rated pumpsets.

1.3.3.3 Energy saving PAT Scheme for power stations:

Under the Perform, Achieve and Trade

scheme, mandatory energy reduction targets

have been prescribed for thermal power stations.

TANGEDCO has initiated steps in all Thermal and

Gas Power Plants to meet the Energy

Consumption (EC) norms and standards. The

improvement works for reduction of energy

consumption at a cost of Rs. 20.90 crores in

North Chennai Thermal Power Station (NCTPS), at

a cost of Rs. 45.55 crores in Tuticorin Thermal

Power Station (TTPS) and at a cost of Rs. 67.88

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crores in Mettur Thermal Power Station (MTPS)

are being undertaken.

1.4.0 Consumer Satisfaction Measures

TANGEDCO is taking all efforts to simplify

payment of electricity bills. Online payment for

collection relating to electricity consumption has

been implemented throughout the State.

Payment can also be made through Net Banking

and Debit cards. ATP (Any Time Payment)

machines are running successfully in selected

areas of Coimbatore and Erode Regions. Further

Payment of current consumption charges through

Mobile (Wireless Application Protocol) has been

enabled for City Union Bank and Karur Vysya

Bank account holders. And payment of current

consumption charges through Mobile (Short

Message Service) has been enabled for Indian

Bank account holders.

1.4.1 Call centers

Computer based power failure redressal call

centres are functioning at Chennai, Coimbatore,

Madurai, Trichy, Erode, Tirunelveli, Nagercoil,

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Salem, Vellore, Karur and Tiruppur. Consumers

can register their power supply failure complaints

by dialing a 6 digit number 155333 from

anywhere. Address of the consumer is retrieved

at this call centre from the computer data base on

the contact phone number of the consumer.

Complaint of the consumer is registered in the

computer and complaint number is given to the

consumer.

1.5.0 Finance

When the present Government assumed

office, TANGEDCO had accumulated losses to the

tune of Rs. 40,400/- crores (as on 31.3.2011).

The Government of Tamil Nadu has supported

TANGEDCO by offering financial assistance in the

form of funds and Guarantees to revive the

financial position of TANGEDCO. An assistance of

Rs. 7913.35 crores during 2011-12 and Rs.

11,242 crores during 2012-13 were provided by

the Government of Tamil Nadu which is the

highest since the inception of the Board.

33

The Average Rate of Realisation (ARR) and

Average Cost of Supply (ACS) for 2012-13 are

Rs. 4.85 per unit and Rs. 6.85 per unit. All efforts

are being made to bridge the gap between ARR

and ACS by reducing the expenditure.

1.5.1 Financial Restructuring Plan:

In order to rescue TANGEDCO from the

financial crisis, the Government of Tamil Nadu

has approved following Financial Restructuring

Scheme;

i) Taking over of 50% of short term

liabilities (STL) of Rs. 12211 crores as

on 31.3.2012 by the State Government

by issue of bonds initially by TANGEDCO

backed by Government guarantee to

the participating lenders.

ii) Permitting TANGEDCO to restructure

the balance 50% of short term liabilities

of Rs.12211 crores backed by

Government Guarantee, with

repayment of principal in 7 years period

after moratorium of 3 years.

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1.5.2 Government Guarantees:

In order to enable TANGEDCO to avail

borrowings during the financial year 2012-13, the

Government of Tamil Nadu has provided

Government guarantee of Rs. 10000 crores for

transition loans i.e., Rs. 5000 crores each from

Rural Electrification Corporation Limited (REC)

and Power Finance Corporation Limited (PFC). In

addition, Government of Tamil Nadu has provided

guarantee of Rs. 6000 crores to Tamil Nadu

Power Finance and Infrastructure Development

Corporation Limited (TNPFC) for raising funds

through issue of bonds for onward lending to

TANGEDCO.

In the process of implementing the

Financial Restructuring Plan, Government

guarantee of Rs. 18,493.45 crores has been

sanctioned to TANGEDCO.

1.6.0 Filling up of vacancies

After assumption of charge by this

Government , 600 Assistant Engineers in various

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branches of Engineering have been recruited in

time scale of pay. In addition, 644 persons in

various cadres have been appointed under

compassionate grounds in the time scale of pay.

Besides the above, 4686 Contract labourers and

5516 part-time Conservancy Workers have been

absorbed as permanent employees in time scale

of pay. In total 11,446 employees have been

added to the rolls of TANGEDCO and

TANTRANSCO so far.

With a view to providing better service to

consumers, it is proposed to recruit 4000 ITI

Helpers, 1000 Technical Assistants, 1000

Assessors and 15 Assistant Accounts Officers

totaling to 6015 Nos.

In short, action has been taken to fill up

17461 permanent vacant posts in TANGEDCO and

TANTRANSCO after assumption of charge by this

Government.

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TAMIL NADU ENERGY DEVELOPMENT

AGENCY

2.0 Renewable Energy

Renewable Energy is the energy derived

from natural processes (e.g. sunlight and wind)

that are replenished at a faster rate than they are

consumed. Solar, Wind, Geothermal, Hydro, and

some forms of biomass are common sources of

renewable energy.

Starting with about 4 MW of installed

capacity in Tamil Nadu in 1990, Tamil Nadu today

leads the country with total renewable energy

installed capacity of 7999.025 MW. This accounts

for 30% of the total installed renewable energy

capacity of 26,677.10 MW in the country. Tamil

Nadu continues to be the leader in the installed

capacity of wind energy.

37

Installed capacity of renewable energy

Tamil Nadu Energy Development Agency

(TEDA) was formed in 1985 to promote use of

renewable energy by execution of pilot projects.

TEDA also is the State Nodal Agency of Ministry of

New and Renewable Energy and provides

Financial Assistance under various schemes.

2.1 Tamil Nadu Solar Energy Policy 2012

The Honorable Chief Minister announced an

innovative Tamil Nadu Solar Energy Policy on 20th

October 2012 with a vision to develop Tamil Nadu

Sl.No RE type Total Installed Capacity (MW)

as on 31.3.2013

1 Wind 7145.225

2 Bagasse Cogeneration

659.400

3 Bio mass 177.400

4 Solar 17.000

Total 7999.025

38

as a world leader in the Solar Energy. Through

this Policy the Government intends to make solar

energy a peoples movement just as it did earlier

in the case of Rain Water Harvesting.

As per the Solar Energy Policy, Solar

purchase Obligation of 3% in the calendar year

2013 and 6 % from calendar year 2014 onwards

has been made mandatory for all HT Consumers

(HT Tariff I to V) and LT Commercial Consumers

(LT Tariff V). Further action will be taken for

implementing this after consulting Tamil Nadu

Electricity Regulatory Commission. Domestic

consumers, huts, cottage and tiny industries,

power looms, LT Industrial consumers and

Agricultural consumers are exempted from SPO.

This SPO is likely to fast track development of

solar power in the state. The policy envisages

establishing 3000 MW solar plants within the

State. The proposed 3000 MW of Solar Power will

be achieved through Utility Scale Projects,

Rooftops, and under REC mechanism as follows:

39

Year (2013-2015)

Utility Scale (MW)

Solar Roof Tops (MW)

Renewable Energy

Certificates

(REC) (MW)

Total (MW)

(A) (B) (C) (A)+(B)+(C)

2013 750 100 150 1000

2014 550 125 325 1000

2015 200 125 675 1000

Total 1500 350 1150 3000

In Utility scale out of 1500 MW, 1000 MW will be

funded through SPO and balance 500 MW through

Generation based Incentive provided by the

Government.

In this way it is proposed to encourage

the domestic consumers using Solar Rooftop

Panels by giving Generation based incentive of

Rs. 2.00 for each units generated for the first

two years, and Re.1.00 for the next two years

and subsequently Re.0.50 for the next two years

or Rs.20,000 per kilowatt as investment subsidy.

40

Solar rooftop installations are to be

promoted by enabling net metering. The Net

metering facility is also being extended to solar

power system installed in commercial

establishments and individual homes. The net

metering envisages that excess power shall be

fed back to the grid with power credits accruing

to the Photovoltaic energy producer.

The Solar Policy mandates compulsory roof

top solar power generation in all new Government

and Local Body Buildings. The existing

Government/Local Body buildings will be provided

with solar rooftops in a phased manner. Similarly

all Street Lights and Water Supply installations in

local bodies will be energized through solar power

in a phased manner.

2.2 Chief Ministers Solar Powered Green Houses Scheme:

In 2011-2012 Tamil Nadu launched Indias

largest solar rooftop programme for providing

Solar powered Green Houses (3 lakhs houses by

41

2015-16) under Chief Ministers Solar powered

Green Houses scheme. A sum of Rs. 180 crores is

being earmarked for provision of solar powered

Home lighting systems with battery backup in

60,000 Green Houses every year. This scheme is

first of its kind in India.

2.3 Solar Powered Street Lights:

In 2011-2012 Tamil Nadu government also

launched Indias largest Solar Energy Street

Lighting scheme. By which, One Lakh street

lights will be converted as Solar energy street

Lights within the year 2015-2016. A sum of

Rs. 52.50 crores is being provided every year for

converting 20,000 street lights into Solar energy

street lights through centralized solar plants of

500-600 W capacity. Each such plant will support

conversion of 10-15 street lights into solar

powered street light. To promote energy

efficiency, the existing lights are being replaced

with LED lamps. These are fitted with a

mechanism to optimise power consumption to

42

provide sufficient illumination between 10 PM and

5 AM.

2.4 Installation of SPV Power Plants in BC/MBC/DNC hostels

Government order has been issued for the

installation and commissioning of 1Kwp SPV

(Solar Photo Voltaic) Power Plants at 103 Nos

BC/MBC/DNC and Minorities College hostels at a

cost of Rs. 252 lakhs.

2.5 Solar Powered pumps

The Government has ordered procurement

of 500 solar powered agriculture pump sets for

distribution to farmers. Out of total cost, 50%

will be met from National agriculture development

programme and 30 % from the Central Financial

Assistance from Ministry of New and Renewable

Energy. Balance 20% shall be farmers

contribution to be met partly through loan and

partly through farmers direct contribution. Each

pump will have solar panel of 4800 Wp capacity

and will deliver water equivalent to that of a 5 HP

43

AC submersible pumpset. Agriculture department

will select the beneficiaries. This pilot scheme

shall be implemented preferably in delta districts.

2.6 Other Schemes

Under various schemes, subsidy is provided

to promote the use of renewable energy. The

details of subsidy are as below:

S.No Name of scheme

Available Financial Assistance/subsidy

1. Off-Grid Solar PV Schemes with Battery storage (a) 210w to 1Kw

Rs.72,000/Kwp

(b) From 1Kw to 10Kw - Rs.66,000/Kwp

(c) From 10Kw to 100Kw Rs.60,000/Kwp

2. Off-grid Solar PV without battery (a) Up to 5Kw Rs.48,000/Kwp

(b) From 5Kw to 100Kw Rs.42,000/Kwp

(c) From 100Kw to 500Kw

Rs.39,000/Kwp

44

3. Off-Grid Solar Thermal Application (a) Evacuated Tube Collectors (ETC)

Rs. 3000/ sq. m

(b)Flat Plate Collectors (FPC) with liquid

Rs. 3300/ sq. m

(c) Flat Plate Collectors with air

Rs. 2400/ sq. m

(d)Solar collector Rs. 3600/ sq. m

(e) Concentrator with manual tracking

Rs. 2100/ sq. m

(f) Non- imaging concentrators Rs. 3600/ sq. m

(g) Concentrator with single axis tracking

Rs. 5400/ sq. m

(h)Concentrator with double axis tracking

Rs. 6000/ sq. m

4. Biomass Power Projects Rs.20 lakhs X (CMW)^0.646

5.

Bagasse Co-generation in Private sugar mills

Rs.15 lakhs X(CMW)^0.646

45

6.

Bagasse based Co-generation projects in cooperative/ public sector sugar mills. (Maximum support of Rs. 8 crore/ project)

Boiler Pressure of 40 bar & above - Rs 40 Lakhs/MW surplus power Boiler Pressure of 60 bar & above - Rs 50 Lakhs per MW surplus power Boiler Pressure of 80 bar & above - Rs 60 Lakhs/MW surplus power

7. Non Bagasse Based Biomass Co-generation

20 lakhs per MW (maximum 5MW)

8.

Biogas based Distributed / Grid Power Generation Programme

For 3 - 20kw (25 M3 to 85 M3 Plant Capacity) - Rs. 40,000 per kw >20kw up to 100kw - Rs. 35,000 per kw >100kw up to 250 kw (Any Plant Capacity) -Rs. 30,000 per kw

9.

Conversion of Industrial waste to bio gas by Biomethanisation in dairy, tannery, slaughterhouse,

Rs.1 crore MWeq. (12000 Cu.m biogas per day)

46

sugar (liquid), bagasse wash, textile (liquid), paper (liquid) and pharmaceutical industry

10.

Conversion of Industrial waste to bio gas by biomethanisation in all other industries

Rs.50 lakhs MWeq. (12000 Cu.m biogas per day)

11.

Power Generation from Biogas i) Boiler + Steam Turbine configuration

Rs.20 lakhs/MW

ii) Biogas Engine / Turbine Configuration

Rs. 1.00 Crore/MW

12.

Power generation from solid industrial waste

Rs.20 lakhs/MW

13. Development / Up-gradation of Watermills

1.Only Mechanical Output - Rs. 35,000/- per Watermill

47

2. Only Electrical or only Mechanical output (up to 5 kw)

-Rs. 1,10,000/- per Watermill.

14.

Micro Hydel Projects (up to 100 kW capacity)

Rs. 40,000/ kw

15.

Implementation of Alternate Fuels for Surface Transportation Programme

Rs. 4,000/- or 20% ex- works cost of the vehicles whichever is less.

i Battery Operated Low speed Two wheeler

ii Battery operated High speed two wheeler

Rs. 5,000/- or 20 % ex- works cost of vehicles whichever is less

iii Battery operated seven seater Three wheeler

Rs. 60,000/- or 20 % ex- work cost of vehicles whichever is less

iv Battery operated four seater car

Rs. 1,00,000/- or 20% ex- works cost of vehicles whichever is less

48

v Battery operated bus/mini bus with minimum of 10 seats and above.

Rs. 4,00,000/- or 20% ex- works cost of the vehicles whichever is less.

In 2011-12, Financial Assistance of

Rs. 61.85 crores was provided for rooftop

systems of 8.9 MW capacity. Total of 2,290 solar

water heating systems have been installed by

individuals in the state with Government Financial

Assistance of Rs. 8.24 crores. One No. 6MW

Biomass power Project is being installed at a cost

of Rs. 30 crores. Twelve Co-generation Plants in

cooperative and public sectors sugar mills totaling

183 MW capacity are under implementation at a

total cost of Rs. 1241.15 crores. Two Biomass

Co-generation (Non- Bagasse) Plants at

Thiruvallur and Tiruppur for a capacity of 1.95

MW, 4 Biogas based power generation plants for

292KW capacity, 7 Industrial waste based Biogas

plants for a total of 6.5 MW capacity are being

installed with Government Financial Assistance of

49

Rs. 789.5 lakhs. Hundred Water Mills/ Hydel

Plants for 100 KW capacity have been sanctioned

at a cost of Rs. 150 lakhs including a subsidy of

Rs. 93.5 lakhs. Sanction has been accorded for

total of 2,450 Battery operated 2-Wheeler with

Financial Assistance of Rs. 75.47 lakhs, and 2

numbers of Battery operated 4-Wheeler have

been sanctioned with a subsidy of Rs. 1.70

Lakhs.

2.7 International Renewable Energy Conference (IEC) TEDA conducted RENERGY 2012, an

International Conference cum Expo on Renewable

Energy at Chennai Trade Centre, Chennai on 12th

& 13th March 2012. RENERGY 2012 attracted 105

exhibitors, 1,400 conference delegates, 66

speakers and more than 10,000 visitors. TEDA

also conducted RENERGY Coimbatore 2013, with

Coimbatore District Small Industries Association,

Coimbatore from 23rd 26th January 2013 which

attracted 120 exhibitors, 800 delegates, and

25,000 visitors.

50

2.8 Information Technology & Capacity Building: At least one engineer with one Junior

Assistant has been posted in each district to

monitor the schemes. These Engineers have been

trained in implementation and carry out quality

checks of installations. Application submission as

well as tracking for Solar Photo Voltaic (SPV)

systems and Solar Water Heating Systems

(SWHS) is fully made online. Application forms for

other schemes can be downloaded from the

website of TEDA. Chief Ministers Solar Powered

Green Houses Scheme and SPV Street Lighting

Systems are fully monitored through web based

Enterprise Resource Planning (ERP) software. A

professionally managed call centre with toll free

phone no 18001021224 has been established for

attending to complaints of beneficiaries of Solar

Powered Green Houses and monitoring of

rectification by the installers.

51

ELECTRICAL INSPECTORATE DEPARTMENT

The department of Electrical Inspectorate

was created on 7th September 1961. It functions

under the administrative control of Energy

Department. The department is entrusted with

responsibilities of enforcement of rules and

regulations framed under the new Electricity Act,

2003 (Act 36 of 2003) for safe utilization of

energy. The department is also in charge of

Licensing of Lifts, Collection and Levy of

Electricity Tax, Calibration and testing of

electrical equipments.

3.0 Activities

The Department is entrusted with the

following duties and functions:

The department has been designated as State nodal agency for energy conservation

to co-ordinate, regulates and enforces the

provisions of the Energy Conservation Act,

2001 (Central Act 52/2001).

52

It functions as inspecting and licensing authority for erection and maintenance of

the lifts under the provisions of Tamil Nadu

Lift Act, 1997 and Tamil Nadu Lift Rules,

1997.

It has responsibilities of levying and collection of tax under the Tamil Nadu Tax

on Consumption or Sale of Electricity Act,

2003.

It performs issue of electrical certificates to the Cinema Theatres as per Tamil Nadu

Cinema (Regulation) Rules, 1957 and issue

of licenses and certificates to the electrical

contractors and workmen under Central

Electricity Authority Regulations, 2010

through Electrical Licensing Board.

It is responsible for the issue of permission for commissioning of high voltage

installations (above 650V rating) to ensure

conformity with the relevant codes,

standards and practices as per Electricity

Act, 2003 (Central Act 36 of 2003) and

53

Central Electricity Authority (Measures

relating to Safety and Electric Supply)

Regulations, 2010.

It carries out testing and calibration of electrical instruments and equipments

through the Government Electrical Standard

Laboratory.

3.1 Performance & Revenue receipts

During the year 2012-13 licenses for

erection of 411 new electrical installations and

1851 new lifts have been issued. The department

collects inspection and licensing fee under Indian

Electricity Rules, Tamil Nadu Cinemas

(Regulation) Rules, and Tamil Nadu Lift Act.

During the year 2012-13 Rs. 9 crores was

collected as inspection and licensing fees. The

department is also in charge of collection of

electricity tax under Tamil Nadu Tax on

Consumption or Sale of Electricity Act, 2003. The

electricity tax collection in the year 2012-13 was

Rs. 748 crores.

54

3.2 Energy Conservation

(i) Energy Conservation Mission

The Government of Tamil Nadu has formed

State Energy Conservation Mission on

18.10.2012. The objective of the mission is to

assist Government in policy formulation for

promotion of energy conservation. The mission is

to co-ordinate and monitors various energy

conservation and energy efficiency schemes of

the Government. The mission is headed by Chief

Secretary to Government of Tamil Nadu and has

Secretaries of Energy, Finance, Industries,

Municipal Administration and Water Supply,

Housing and Urban Development, Public Works

Department beside CMD TANGEDCO, CMD TEDA,

Head of Department of Energy Studies in Anna

University as members. Chief Electrical Inspector

to Government is convener of the mission.

55

(ii) State Energy Conservation Fund

State Energy Conservation Fund has been

constituted for promotion of efficient use of

energy and its conservation within the state. The

resources available with the funds are used to

formulate and implement pilot/demonstration

projects for promotion of efficient use of energy

and its conservation. The fund allocated so far to

the State Energy Conservation Fund is Rs. 5.28

crores. The fund available for the forthcoming

activities is Rs. 3.78 crores.

(iii) Energy Conservation Building Code (ECBC)

The Energy Conservation Building Code

(ECBC), was launched by Ministry of Power,

Government of India, towards promoting energy

efficiency in the building sector. The ECBC

prescribes minimum energy efficiency standards

for design and construction of a non residential

building. The code is applicable to buildings or

building complexes that have a connected load of

100 kw or greater or a contract demand of 120

56

kVA or greater. Generally, buildings or complexes

having conditioned area of 1,000 sq.m or more

will fall under this category. The code is under

voluntary adoption by the States. The

government has issued orders in July, 2012 to

constitute a technical committee for

customisation of the ECBC to suit the local

climate conditions and suggest the revision of

municipal bye-law to incorporate ECBC provisions

in it.

(iv) Perform, Achieve and Trade (PAT) Scheme

As per the energy conservation Act, the

central government can notify energy intensive

industries as Designated Consumers (DC) for

mandatory compliance of the energy consumption

norms. Under this scheme, energy saving

certificates are issued to the designated

consumers who over perform the energy saving

targets. The under achieving Designated

Consumers either have to purchase the energy

saving certificates or to pay penalty.

57

In Tamil Nadu, 20 Thermal Power Plants, 9

Cement plants, 5 Textile factories, 3 Chemical

plants, 3 units of Pulp and Paper and 1 Fertilizer

factory have been notified as designated

consumers. Energy consumption targets for these

designated consumers are fixed under the PAT

scheme for compliance within the target year of

2015. On completion of the scheme 700MW of

electricity will be saved.

(v) Energy Star Labeling in Equipment

The Standards and labeling programme of

GOI mandates compulsory assigning of star rating

to the appliances depending upon their efficiency

at the manufacturing stage itself. The appliances

bearing more number of stars save more energy.

At present, labeling is made mandatory for four

appliances (tube lights, air conditioners,

refrigerators and distribution transformers) for

which anything below one star cannot be

manufactured or sold as per Energy Conservation

Act, 2001. The Electrical Inspectorate monitors

the implementation of the scheme in the State.

58

3.3 Testing and Calibration

The Electrical Standard Laboratory under

this department calibrates the instruments and

energy meters. In order to enhance the testing

and calibration facilities at the Government

Electrical Standards Laboratory, procurement of

enhanced version of three phase power energy

calibrator is under process. The laboratory is

recognized at the national level through NABL

accreditation acquired in July, 2012.

3.4 Electrical Licensing Board

The Licensing Board was created in the year

1955. The functions of the board is to issue

license to the electrical contractors and to grant

certificate of competency to wiremen and

supervisors under Central Electricity Authority

(Measures relating to Safety and Electric Supply)

Regulations, 2010. The board is also entrusted

with the responsibilities of analyzing electrical

accidents due to incompetent wiring work and

proposing measures to avoid such accidents in

59

the State. The Chief Electrical Inspector to

Government is ex officio President of the board

and the Electrical Inspector is the full time

Secretary.

The electrical contractors licenses are

classified as ESA Grade to carry out all types of

electrical works with no limitation in voltage,

EA Grade to carryout electrical works upto

33kV, ESB Grade to carry out all medium and

low voltage electrical works and EB Grade to

carry out all low voltage electrical works up to

50kw. So far following valid electrical contractor

licenses and competency certifications have been

issued in the state.

Contractor Licenses No

ESA Grade 140

EA Grade 659

ESB Grade 560

EB Grade 4627

Competency Certificates

Power Generating Station Operator

77

60

Supervisor 21277

Wireman 43347

Wireman Helper 6055

3.5 Modernizing of functioning of Electrical inspectorate

Through Information technology and use of

latest electronic equipment, functioning of the

department is being modernized. The existing

electrical laboratory is being furnished with

modern three Phase Power Energy Auto

Calibration equipments for calibration of energy

meters of generating plants. The project for

computerization of application and scrutiny of lift

license is under progress. Software for online

filing of returns of electricity tax is also being

planned for implementation. The procedure of

issue of license and inspection will be made more

transparent by use of Information Technology.

61

TAMIL NADU POWER FINANCE AND

INFRASTRUCTURE DEVELOPMENT

CORPORATION LIMITED

The Tamil Nadu Power Finance and

Infrastructure Development Corporation Limited

(TN Power Finance) is a Non Banking Finance

Company and is classified as a Public Financial

Institution by the Ministry of Company Affairs,

Government of India. TN Power Finance was

incorporated on 27.06.1991. The authorized and

paid up share capital of the Corporation is Rs. 50

crores. The Corporation mobilizes funds for

schemes related to Generation, Transmission and

Distribution of electricity of TANGEDCO and

TANTRANSCO.

4.0 Financial Performance:

TN Power Finance has been a profit making

corporation since inception. The total revenue

during the year 2012-2013 is Rs. 966.49 crores

62

as against Rs. 716 crores in the previous year.

The net worth of the Corporation has increased to

Rs. 531.91 crores as against Rs. 441.85 crores at

the end of the previous year. It has earned a net

profit of Rs. 469.65 crores from the year of its

incorporation. The gross profit for the year

2011-12, was Rs. 73.42 crores. The performance

for the year 2012-13 has resulted in Rs. 96.86

crores of profit after tax. The Corporation had

declared dividend regularly from the year 1995-

96 and the total dividend amounting to Rs. 71.42

crores has been so far paid to Government. The

dividend declared during the year 2011-12 is

Rs. 5 crores.

4.1 Fixed Deposits:

The faith reposed by depositors in the

Corporation gets reflected in steady increase in

depositors of TN Power Finance. The deposit base,

which was Rs. 2.09 crores in the initial year of

1991 has now grown to Rs. 8196 crores as on

63

31.03.2013. The fixed deposits received for the

last two years are as detailed below:

Year Deposit amount (Rs. In crores)

No. of deposits

2011-12 6952 24,05,274

2012-13 8196 25,21,250

The cumulative net deposits of the Corporation

surged to a record high of Rs. 8196 crores on

31.03.2013. During the year 2012-13, the

Corporation mobilized a sum of Rs. 1244 crores

as net cumulative deposits. The net deposits

increased from Rs. 6952 crores at the beginning

of the year to Rs. 8196 crores at the end of the

year registering a growth rate of 17.89%. The

deposit mobilized from Public is Rs. 2172 crores

and the deposit from Government and

Government Institutions is Rs. 6024 crores.

64

4.2 Rate of Interest

TN Power Finance offers following rate of

interests on various deposits from 11.03.2011.

The Corporation offers an additional interest of

0.25% p.a. for 12 months & 24 months and

0.50% p.a. for 36, 48 & 60 months on deposits

made by senior citizens aged 58 years and

above.

Tenure of deposit

Rate of interest

Rate of interest

(Senior citizens)

One year 9.25% 9.5%

2 yrs 9.5% 9.75%

3,4 and 5 yrs

10% 10.5%

4.3 Deposits of Government Welfare Schemes:

Under a special incentive scheme for

students to curtail the school dropouts for 10th,

11th and 12th standards in Government and

Government Aided Schools an incentive of

65

Rs. 1500/- per student for 10th & 11th standards

and Rs. 2000/- per student for 12th standard is

sanctioned by the Government. In the year

2011-12 School Education Department has

sanctioned and deposited a sum of Rs. 321.17

crores and in the year 2012-13 School Education

Department has deposited a sum of Rs. 353.55

crores towards this new special incentive scheme.

A deposit of Rs.1,00,000/- per temple is

made with TN Power Finance for 10,908 temples

under the control of HR & CE Department

towards Oru Kala Pooja scheme, under the

scheme interest amount earned on deposit with

TN Power Finance is used for performing the daily

pooja. Similarly, under Girl Child Protection

Scheme, up to March 2013 a sum of Rs.715

crores has been deposited by Social Welfare

Department. Rs 18.65 crores have been

deposited by School Education Department under

the scheme of assistance to students whose

bread winning parents die or permanently

incapacitated in an accident.

66

4.4 Financial Assistance to TANGEDCO:

The funds mobilized by TN Power Finance

are being utilized to finance capital projects of

TANGEDCO. A total sum of Rs. 24,208 crores

has been sanctioned as gross financial assistance

to TANGEDCO by way of hire purchase, lease and

term loan from the year of inception till

31.03.2013. A record high amount of Rs.5098

crores has been provided as financial assistance

to TANGEDCO in the year 2012-13. The net loan

repayable by TANGEDCO as on 31.03.2013 is

Rs. 10251.79 crores.

4.5 Issue of Bonds on private placement:

Government has permitted TN Power

Finance to raise funds for a total amount of

Rs. 6000 crores through private placement of

bonds in addition to fixed deposit programme.

Government have also issued guarantee for

Rs. 6000 crores. The total amount mobilized

through issue of bonds up to 31.03.2013 is

Rs. 964.20 crores.

67

Conclusion:

The document Vision 2023 released by

Honble Chief Minister sets the plan for

infrastructure development for the state to reach

a high standard of social and economic

development. The document envisages provision

of best infrastructure services in India.

The department has worked out programs

and strategies as envisages in document Vision

2023 to make good shortage of power through

addition of generation capacity by owning or

securing under long term contracts. It is the

endeavour of the department to complete existing

projects within the time line fixed by Honble

Chief Minister. Implementation of the new

projects has also been put on fast track. Further

the government will implement reforms in the

power sector so that the benefits of competition

and innovation are delivered to consumers by

way of reliable power supply at the most

economic price. The strategies in the sector are

68

centred around Accessibility, Availability

(adequacy) and Affordability of power for all.

Action has already been initiated to create

evacuation capacity commensurate with the

growth in generation capacity. The planning for

infrastructure is carried out considering the fact

that there is a gestation period for

implementation of mega generation and

transmission projects.

Tamil Nadu leads the country in terms of

renewable installations. Tamil Nadu is pioneer in

harnessing wind energy and remains at the no 1

position in the country. It is endeavour of the

government to retain this leadership position.

Further through policies and program the state

will strive towards reaching the Numero Uno

status in the country in case of Solar energy too.

The solar policy envisages accelerated

development of 3000 MW of solar power before

2015.

The strategy evolved adequately meets

the myriad challenges faced by the power sector.

69

While a considerable amount of success has been

achieved in past two years, the department is

conscious of challenges ahead. Provision of

reliable and affordable power to all remains our

goal and under the dynamic leadership of Honble

Chief Minister, strive towards provision of high

quality infrastructure comparable with the best in

the world to the residents of the State.

Natham R.VISWANATHAN Minister for Electricity, Prohibition and Excise