The Hindu Business Line : TNEB to add 2,000-MW capacity in 3-4 years

Senior electricity board officials stated this at a session on `Self sufficiency in power — Tamil Nadu's path to progress', organised by the Federation of Indian Chambers of Commerce and Industry - Tamil Nadu State Council, here on Wednesday.

Mr K.S. Sitaraman, Chief Engineer (Generation), Tamil Nadu Electricity Board, said the board proposed to install 500-MW plants in Ennore, North Chennai, Mettur and Tuticorin. If this capacity were added, it would go a long way in meeting electricity demand in the State. The TNEB was now able to meet only 46 per cent of demand from its own facilities while the balance 54 per cent was purchased.

The board had imported 1.6 million tonnes of coal from China with good calorific value. It was also seeking a captive coal mine in Orissa. It had also thought of a coal washery, which did not work out.

Board's revenue

Mr S. Kathiresan, Member (Accounts), TNEB, said the board expected revenues of Rs 14,000 crore in 2006-07, nearly 65 per cent of which would come from industrial and commercial customers.

He highlighted the problems faced by the board in meeting its wages and pension and retirement benefits obligations, as it had not created any reserve fund for this purpose.

Mr A. Balraj, Chairman, Tamil Nadu Electricity Regulatory Commission, pointed out that the TNEB had not added any significant capacity in the last few years and said there was a need to add capacity.

Private power was not going to be as expensive as it was feared in the beginning, he said. With gas as fuel, the cost would come down to Rs 1.50-2 a unit.

Therefore, private investors who were interested in the power sector should be encouraged.

If the Union Government wasnot able to provide gas linkage to the power plants, the developers should be allowed to import gas.

The commission, he said, had, in its first tariff order passed three years ago, advised the TNEB to consider importing coal for its thermal stations. A number of investors were willing to set up coast-based power plants in the State using imported coal.

He also asked the TNEB to improve the grid and create more infrastructure facilities. As, otherwise, there would be no point in inviting private investment in the power sector. Also, if the grid were not improved, the line losses would only increase.