Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco), a subsidiary of Tamil Nadu Electricity Board (TNEB), is planning to raise funds to the tune of Rs 500 crore by way of private placement of bonds. The proposed fund raising is to support its capital expenditure of ongoing generation, transmission and distribution network.
According to sources, the instrument / facility will be state government guaranteed, rated, listed, redeemable non-convertible bonds. The issue size is around Rs 500 crore with option to retain over subscription of Rs 900 crore.
It may be noted that Tangedco is planning to put up co-generation plants for the generation of 183 MW power with an investment of Rs 1,126 crore in 12 co-operative and state-owned sugar mills.
Tamil Nadu at present faces power shortage to the tune of 3,500 MW. The authorities are buying 2,000 MW on a temporary basis everyday. Tangedco has said that even though it had purchasing power to the tune of Rs 50 crore a day, it was not in a position to tide over the shortage.
Earlier, the government estimated TNTransco would need capital up to Rs 20,000 crore and expressed openness to joint venture partners.
The 53-year-old Tamil Nadu Electricity Board (TNEB) in November last formally transferred property and personnel from itself to the holding company, TNEB Limited, and its subsidiaries, Tamil Nadu Transmission Corporation (Tantransco) and Tamil Nadu Generation and Distribution Corporation (Tangedco).
