Dynamite News Tamil Nadu power distribution company surges electricity tariff to cover financial loss
The Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). Read further on Dynamite News:
Tamil Nadu: The Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) said that it has been compelled to increase the electricity tariff to cover increasing financial loss.
The state power distribution company said that the total financial loss of the Tamil Nadu Power Generation and Distribution Corporation, which was Rs 18.954 crore in 2011-12, increased to Rs 94,312 crore in the last 10 years, TANGEDCO said in a press release.
The release said that Tamil Nadu Power Generation and Distribution Corporation has been forced to take loans from financial institutions and banks due to non-commitment in the past, like the current Tamil Nadu government's commitment of 100 per cent government absorption from 2021-22.
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As a result, the loan amount of Rs 43,493 crore to Tamil Nadu Power Generation and Distribution Corporation and Power Network Corporation in 2011-12 has increased three times in the last 10 years to Rs 1,59,823 crore till (2021-22).
As a result, net interest on loans increased by 259 per cent from Rs 4,588 crore in 2011-12 to Rs 16,511 crore in 2020-21, the release said.
As per the rules of the Tamil Nadu Electricity Regulatory Commission, the electricity tariff was hiked only by 2.18 per cent last year even though there was a possibility to increase the electricity tariff by up to 5 per cent, the release said.
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Meanwhile, opposition party leaders like All India Anna Dravida Munnetra Kazhagam (AIADMK) General Secretary Edappadi Palaniswami and Bharatiya Janata Party (BJP) State President Annamalai condemned the Dravida Munnetra Kazhagam (DMK) led Tamil Nadu government for the power tariff hike. (with Agency inputs)