UDAY Impact: Tamil Nadu discom could break-even after 15 years

Last Modified: Wed Jun 21 2017 18:55:39 GMT+0530 (India Standard Time)
  • Rs. 13,985 crore
    Loss reported by Tamil Nadu’s power utility Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) in 2013-14.
  • Rs. 3,783 crore
    Loss reported in 2016-17.
  • 15 years
    Since TANGEDCO last reported break-even/profit. The discom expects to achieve break-even this fiscal according to a policy note tabled in the state Assembly 19 Jun 2017 by electricity minister P Thangamani.
  • 2
    key reasons for the turnaround:
  • #1
    Additional power generation capacities and power contracted through long and short term basis has enabled TANGEDCO to discontinue procurement of costly power based on naptha and low sulphur heavy stock fuels.
  • #2
    Joining UDAY scheme (on 09 Jan 2017).
  • Rs. 200 crore
    Savings on interest payment each year since the discom's debt has been taken over by the state.
  • Rs. 400 crore
    savings through better coal management and import substitution - UDAY MoU required the central government to meet ensure better quality coal and fixed linkages to coal fired thermal plants in the state.