Tamil Nadu has cut down on revenue losses by almost 50pc after it slashed its coal imports and started procuring coal from domestic markets.
According to officials in Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO), the losses have come down to Rs 5,786 crore in 2015-16 from 12,756 crore in 2014-15
Sources said that the losses have been curtailed as the state which was dependent on coal imports from Indonesia have started looking to domestic markets, which includes Talcher and IB Valley coalfields in Odisha.
The coal is being procured now at a cheaper rate. “The difference is about Rs 1,000 between imported coal and coal procured from domestic market,” he added.
Citing example of Tuticorin thermal plant, he said usually the state electricity department was procuring coal at the cost of Rs 4,700 per metric tonne. Now it is being procured at Rs 3,751 per metric tonne.
He said on an average the state electricity board has been able to save Rs 1,300 crore which has helped reduction in losses drastically.
Interestingly, the state's dependence on coal import was too high a couple of years ago when it has asked Ennore Port to increase its coal handling to 34 million tonnes in the next five years. To a query on what would happen to these coal berths, the official said we are keeping our options open and this could be put to use when we have shortages in domestic market.
He said the state electricity board would break even in the next couple of years and ruled out there is a power crisis in the state. Interestingly, the state electricity board is planning to decommission Ennore Thermal Power station and work is on for building new thermal power project in Ennore Export Processing Zone.
He also said that the state electricity board is now gearing up for monsoon. Last year, we identified 13 substations which got submerged during the floods. “Now we are planning to build retaining walls so that water could not seep into the substations. We are also planning to have sandbags in and around the retaining walls.
“We are also planning to raise the pillar box height,” he added.
Factfile:
1. Tamil Nadu Generation and Distribution Corporation Limited has cut down the losses by more than 50pc
2. The losses have come down to Rs 5,786 crore in 2015-16 from 12,756 crore in 2014-15
3. Revenue from sale of power has gone up by 18.3pc
4. After reducing coal imports, on an average the state electricity board has been able to save Rs 1,300 crore
5. The state electricity board is likely to break even in the next couple of years