The Tamil Nadu government, in an effort to support the state electricity board, has announced a package of financial assistance, including Rs 1,000 crore as advance subsidy for its operations.
Chief minister J Jayalalithaa, after a review meeting with ministers and TNEB officials, said the state government would also extend guarantee to Power Finance Corporation and Rural Electrification Corporation to issue Rs 5,000 crore each as financial support to the board.
The board has so far utilised Rs 3,020.25 crore as subsidy during the current fiscal.
The state government would also absorb Rs 9,529 crore, which is around 50 per cent of the short-term and long-term loans of TNEB according to the discussions held with the power and finance ministry officials in connection with the Chaturvedi Committee report on Financial Restructuring Plan for electricity boards.
The state government had allocated around Rs 7,913.45 crore during 2011-12 to the board.