Power utility may halve loss this year
CHENNAI: Losses of Tangedco are likely to be halved in the present year. According to budget estimates available with TOI, the losses for 2015-16 are likely to be Rs 6,671.92, down from Rs 12,826 crore in 2014-15. Factors that would help the power utility halve the losses include reaping the benefits of tariff hike that was introduced last year and substantial reduction in purchase of high-cost power from private power producers and captive power plants. Power purchase in the current year is expected to drop by 2.81%.
Around Rs 3,000 crore is expected to be added to the company’s revenue on account of tariff hike and another Rs 3,500 crore will be saved by not purchasing power from high cost producers and captive plants that use naphtha, gas and furnace oil as fuel. Though this may sound rosy, the worrying aspect is the loan burden and the interest that has been mounting every year.
“At least 15% increase in revenue will be from tariff hike and another 5% from better collection. Both these are achievable and our revenue will also increase if the government gives its nod for lifting power cuts on industries during evening peak hours,” said a TNEB official.