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Tangedco cuts losses by Rs 2,000 crore in one year
Tangedco’s losses have come down by nearly Rs 2,000 crore over the past year, the discom having ended this financial year with a loss of Rs 3,675.76 crore. It has seen a 5% increase in sale of power due to which the revenue has increased by Rs 2,000 crore and the cost of fuel has also reduced due to availability of local coal.
The financial position of the discom is considerably better after a record loss of Rs 13,500 crore in 2013-14. With the debts being taken over by the government under the Uday scheme, the discom is hopeful of a break-even in 2017-18, mainly due to the interest cost coming down. “In our budget estimates we thought we will end the year with a loss of Rs 6,374.17 crore in 2016-17. But due to better fuel price and sale of power, our loss has come down by half of what we had anticipated,“ a senior Tangedco official told TOI.
Apart from better sale of power and lower fuel price, Tangedco has also got better subsidy from the government. “Soon after the AIADMK took charge after the assembly election, the then chief minister J Jayalalithaa announced 100 units free for domestic consumers. Already power is being supplied free to farmers and huts. For all these, we get subsidy from the government and this year we received Rs 8,621 crore as subsidy against Rs 7,695 crore last year,“ said the official. Purchase of power from private thermal, wind and solar power companies has increased only by 2.87%.
“There was better demand in the last year and Tangedco supplied power without any shortage. But the company purchased power from a lower tariff and more wind power was evacuated during the season. All these helped to lower the purchase cost,“ the official said.
The accounts will be presented to the Tangedco board after getting its nod.
The year ahead is promising for Tangedco. “The interest cost in the coming year will be lower by more than Rs 1,000 crore as the debt has been taken over by the government under the Uday scheme.
This alone will bring down the loss and we are also hoping to lower the fuel cost,“ said the official.
On the expenditure side, the company will have to allocate Rs 700 crore for 7th Pay Commission for Tangedco employees.
“The unions have started working on the new pay commission but it will be finalised only after the committee set up by the government for its employees submits its report,“ he said. Xavien Howard Jersey
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