Tamilnadu Generation and Distribution Corporation Ltd (Tangedco) and Tamil Nadu Power Finance Corporation are planning to raise around Rs 11,000 crore through bonds and government guarantee.
“It has become a challenge for us to borrow from banks, which are shying away from the sector. To address the issue, the state government has given guarantees to get funds to the tune of Rs 5,000 crore. Besides, the state Power Finance Corporation will raise Rs 6,000 crore through bonds,” said Tamil Nadu Electricity Board (TNEB’s) chairman Rajeev Ranjan said.
The board also said it would generate additional revenues of around Rs 9,000 crore from next year by increasing tariff. The money will used to pay off dues to the banks and for ongoing projects. The board has dues of around Rs 10,000 crore and made a cumulative loss of around Rs 50,000 crore.
Speaking on the sidelines of Renergy 2012, an international conference and expo on renewable energy organised by the Tamil Nadu Energy Development Agency recently, Ranjan said, “the time line for raising these funds would depend on the market condition. By end of the current calendar, we will raise the money.”
He said the Central Electricity Authority had recommended to release Rs 2,752 crore from the Centre’s Clean Energy Fund to Tamil Nadu to set up infrastructure for transmitting and distributing power being produced in the state.
“We are planning to invest around Rs 10,000 crore to strengthen the infrastructure for transmitting and distributing the power. We are looking at raising from various sources,” he added. The Japan International Cooperation Agency would give Rs 3,000 crore to set up transmission and distribution infrastructure.
The transmission lines, will mainly focus on the evacuating power being produced by wind and other renewable energy.
