Tamil Nadu closes gap in energy cost and recovery
Rakesh Kumar Kubde
April 27th, 2012

The State power utility, Tamil Nadu Generation and Distribution Corporation Ltd, will lose over Rs 4,312 crore in the current year as it buys or generates power at a higher cost and sells it at a lower price. Following the new tariff rates for power, the average cost of supply of power is Rs 5.98 a unit against the average rate of realisation of Rs 5.29. This still leaves a shortfall of Rs 0.69 a unit in the current year.

According to the policy note on energy tabled in the Assembly today, the gap has been closed from a shortfall of Rs 14,312 crore in 2011-12. The realisation then was much lower at Rs 3.74 a unit against a cost of Rs 6.15. The major factors contributing to the deficit are the need to buy power to meet the growing demand and the shortfall of Rs 2.41 on every unit of power sold to the consumer.

The installed power generation capacity in the State is 10,364 MW with the average availability at 8,500 MW whereas the demand ranges from 11,500 MW to 12,500 MW.

Since 2008 the State has seen restriction and control measures in power supply to manage the shortfall.

The situation is expected to improve with improvement in the power position.

The State Government has over 15,507 MW of power projects in the pipeline in various stages of implementation. Over 4,887 MW of power generation will be added by the end of 2013.

The Electricity Minister, Mr Natham R. Viswanathan, announced a series of measures to step up energy efficiency in the State.

An organisation to oversee energy efficiency measures and to frame policies will be created, energy audit will be compulsory for High Tension and commercial supply, street lights in urban areas will be converted to energy efficient light bulbs, electric appliances in government offices will be at least three-star rated in energy efficiency and lighting fixtures will be changed to LED and other energy-efficient units.

Efficiency will be upgraded in the power generation facilities under the State power utility to save over Rs 200 crore worth of electricity, he said. Tamil Nadu has over 6,696 MW of wind energy generators with a potential to add over 10,800 MW. Over the next five years, wind energy capacity will grow by 1,000 MW a year.


The State Government is strengthening the transmission capacity to evacuate and fully utilise the wind power. A Rs 2,752 crore transmission system has been recommended by the Central Electricity Authority and a second phase is under preparation.

A separate transmission corridor with 400 KV substations and 400 KV lines are planned.
Source: BL

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