The restructured Tamil Nadu Electricity Board (TNEB), which transferred its property and personnel to the holding company, TNEB Limited and its subsidiaries, the Tamil Nadu Transmission Corporation (Tantransco) and Tamil Nadu Generation and Distribution Corporation (Tangedco), came into effect on Monday.
The Board said the reforms in the power sector were driven by the central government and the requirements of the Electricity Act 2003. To meet these, the government of Tamil Nadu has restructured the TNEB under Section 131 and 133 of the Electricity Act 2003.
The government has notified the transfer scheme dated October 19, 2010, and has approved the reorganisation of the TNEB with the stipulation that these companies shall be fully owned by the state government.
Following the provisions of the Electricity Act, the government in October 2008 had decided to create TNEB Limited and Tantransco and Tangedco. In June 2009, Tantransco was registered. Six months later, the two subsidiaries were incorporated. Last December, chief minister M Karunanidhi inaugurated Tantransco.
Accordingly, the assets, liabilities and employees have been transferred with effect from November 1, 2010, to the newly formed successor entitites through a provisional transfer scheme.
Senior officials in TNEB said that the holding company – TNEB Limited – would be a shell company and the Board's existing functions will be carried out by the two subsidiaries. The restructuring of the TNEB is expected to result in operational efficiency and financial performance.
Earlier, C P Singh, chairman, TNEB, said that both the companies will be 100 per cent subsidiaries of the TNEB, and ruled out the possibility of a private partner in these companies.
While also ruling out monopoly, Singh said he was “confident that the creation of the new corporations will ensure effective monitoring of these projects and distribution of power generated.”
Of about 72,000 employees, around 10,000 will be transferred to Tantransco and the rest to Tangedco. Earlier a state government order said a tripartite agreement would be signed by the state government, Tantransco / TANGEDCO and representatives of unions to safeguard the interests of workers and pensioners. The chairman of the board will head all the three entities.
