The Hindu Business Line : TNEB may have surplus power in 11th Plan

"The investments required to build the additional 14,768 MW is expected to be about Rs 60,000 crore with the per MW capacity cost being pegged at Rs 4.5 crore."

Coimbatore , Dec. 15

With projects for additional electricity generation of 14,768 MW during the 11th Plan period to be implemented in Tamil Nadu, the State electricity board (TNEB) hopes to have a comfortable positionon the energy front. The board may even be left with surplus power to be traded off to other States, according to the TNEB official sources.

Generation capacity

As per the new generation capacity envisaged in the next five years, the board on its own would have created a total capacity of 3,270 MW comprising 2,500 MW under thermal, 500 MW under hydel and another 270 MW from other sources including wind and gas, according to the Chief Financial Controller, TNEB, Mr G. Rajagopal.

Talking to presspersons at the sidelines of an interactive session the TNEB officials had with the members of the trade and business here on Thursday, he said as of end-March 2006, the total supply of power available for the State worked out to 10,000 MW which included 5,586 MW from the TNEB's own generation capacity and the rest from the Central projects and private sector projects.

Consumption

The State, which has its annual energy consumption growing at eight per cent, is also to witness huge growth of industrial investments over the next four years creating a surge in demand for new generation capacities. The investments required to build the additional 14,768 MW are expected to be about Rs 60,000 crore with the per MW capacity cost being pegged at Rs 4.5 crore, Mr Rajagopal added.

The TNEB has also concern over the rising revenue deficit on account of both free power to farmers and subsidised power.

Revenues

The board, which has its revenue receipts at Rs 14,600 crore and expenditure to be incurred at Rs 16,600 crore, will have its net deficit at about Rs 2,000 crore for 2006-07. For every unit sold, the TNEB incurred a loss of 45 paise. While it incurred Rs 3.45 per unit as cost of production, its realisation per unit works out to Rs 3.03 only.

According to sources, during 2005-06 the board had sold 43,795 million units and its loss stood at about Rs 19,700 crore which includes the net subsidised power cost of Rs 1,346 crore on account of agriculture, domestic and weavers segments.

Different segments

As for the break-up of energy consumption by different segments, industry consumes 35 per cent of the energy generated but contributes to 56 per cent of total revenue received. Whereas the consumption under low-tension users constitutes 66 per cent of power generated and accounts for 44 per cent of board's revenue.

Of the 1.78-crore consumers under different segments, domestic connection accounts for 1.2 crore. The power consumed by agriculture segment accounts for 22 per cent of the energy generated by the board.

The TNEB is working on a financial tie-up with Rural Electrification Corporation Ltd for the new power projects being planned by the board.

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