Chief minister Edappadi K Palaniswami had written to Prime Minister Narendra Modi on April 21 seeking a separate package for discoms including Tangedco, to pay off the power generators
CHENNAI: With an outstanding bill of Rs 15,000 crore to power generation companies, Wednesday’s stimulus announcement where Power Finance Corporation Ltd. (PFC) and Rural Electrification Corporation Limited (REC) will infuse liquidity into discoms, will give a breather to Tangedco.
The condition to avail this includes a guarantee from the state government.
Chief minister Edappadi K Palaniswami had written to Prime Minister Narendra Modi on April 21 seeking a separate package for discoms including Tangedco, to pay off the power generators.
“We are yet to get the details about how much will be provided to Tangedco of the ₹90,000 crore. The total outstanding to power generators as on date is around Rs 15,000 crore,” a senior Tangedco official told TOI.
Since the lockdown, the discom has been facing a loss of ₹60 crore per day as the demand from industries and commercial establishments has hit nadir. The peak demand in April did not increase beyond 11,000MW, as against 16,150MW last year.
“For these loans to Tangedco to clear the outstanding, the state government will have to provide guarantees which will push the fiscal deficit beyond the FRBM cap of 3%. The Centre must provide a waiver for the fiscal deficit cap for Tangedco to receive the funds,” said the official.
Source: TNN
