Chennai, Aug 3: Tamil Nadu Generation and Distribution Corporation's (TANGEDCO) revenue deficit in 2016-17 fiscal is estimated to reduce to Rs 6,374.17 crore on effective cost control measures, Electricity Minister P Thangamani said today.
TANGEDCO's revenue deficit in 2014-15 was Rs 12,756.59 crore and it was reduced to Rs 8,542.12 crore during 2015-16, subsequent to the implementation of revenue augmentation and cost control measures, he told the State Assembly.
Due to such initiatives, the gap between average rate of realisation and average cost of supply has been reduced from Rs 2.16 per unit (in 2010-11) to Rs 1.09 per unit in 2015-16. "It is expected to reduce to 74 paise in the current year," he said.
"The revenue deficit for the current financial year 2016-17 is estimated to be reduced from Rs 8,542.12 crore to Rs 6,374.17 crore because of the effective cost control measures," he said.
So as to improve the financial position of TANGEDCO, the state government has continuously provided financial assistance in the form of equity share capital, tariff subsidy, grants under financial restructuring plan, loan assistance in the past five years, he pointed out.
He said the assistance provided by the state government to TANGEDCO in the past five years from 2011-12 to 2015-16 was Rs 51,746.94 crore. For the current fiscal, it is (proposed to be) Rs 13,856 crore which includes a tariff subsidy component of Rs 9,007.38 crore.
On the power demand front, he said that the government has taken necessary steps to meet future demand. "On this front, it is envisaged to add 2500 MW of hydel power, 13,000 MW of thermal power and 3000 MW of solar power in the next five years and also to provide necessary infrastructure to evacuate power," the Minister said.