TANGEDCO ranking slips to ‘C+’
Key concerns like huge cash losses, lack of power reforms and deterioration in Aggregate Technical & Commercial losses (AT&C) losses have forced a downgrading of Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) in the Annual Integrated Ratings of State Power Distribution Utilities.
TANGEDCO has been graded C + (score between 20 and 35 in the scale of 100) by the rating agencies as per the framework approved by Union Ministry of Power. As per the grading definition, C + means low operational and financial performance capability. TANGEDCO was graded B twice during the first and third integrated ratings.
According to a note accompanying the ratings, TANGEDCO, which has a “high financial risk profile with increasing cash losses, poor capital structure with accumulated losses of over Rs. 65,000 crore as on March 31, 2015,” did not file a tariff petition for FY 2015, FY 2016 and FY 2017.