Curtesy-"The Hindu" dated : 19.01.2011
TNERC suggests distribution companies “It will ensure greater operational efficiency”
CHENNAI: The Tamil Nadu Electricity Regulatory Commission (TNERC) is learnt to have rendered statutory advice to the State government for establishing an exclusive power generation organisation and creating different distribution companies.
All the entities proposed by the TNERC will be autonomous. They will remain government companies, the Commission has stated in a recent communication.
The advice has been given, invoking section 86 (2) of Electricity Act, 2003.
Since November 1, the functions of generation and distribution are handled by the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), a successor-entity of the Tamil Nadu Electricity Board, while transmission is looked after by the Tamil Nadu Transmission Corporation (TANTRANSCO), another successor entity.
The Commission is said to have argued that the aspect of generation has been neglected over the years and this has led to the present problem of acute power shortage.
In 13 States, exclusive entities have been created for generation. [Actually, two more States – Chhattisgarh and Meghalaya – have also established separate generation firms].
The reason adduced by the TNERC for the exclusive generation company is that such an entity will be inherently a profit-making organisation and it will be able to attract investment in generation projects. But, under the present set-up where generation and distribution are handled by single organisation, the chances of the entity remaining a losing concern always are greater in view of heavy losses inherent in the business of distribution.
The Commission contends that there can be at least four distribution companies (DISCOMs) with the headquarters in cities such as Tiruchi, Chennai, Madurai and Coimbatore. Citing the example of transport corporations, the TNERC has said the advice will lead to greater operational efficiency and consumer satisfaction. Each company has to be managed by a full-fledged Board of Directors with a full-time Chairman.
At present, there are nearly 2.2 crore power consumers in the State.
Issues and problems concerning such a large base of consumers cannot be tackled in the present administrative structure of the TANGEDCO to the satisfaction of consumers.
Given the State's track record of better administrative culture, the multi-DISCOM model will be successful, says a power expert.
RESTRUCTURING OF TNEB
Draft Tripartite Agreement - Given by Board (19.10.2010)
Respected Members are requested to send your valuable suggestions and points after reading the attached agreement proposal to Association Email ID : firstname.lastname@example.org within two days.
Agreement draft copy attached with this link..
Restructuring of TNEB
In the G.O Ms No 114 dated 08.10.2008, Government of Tamil Nadu has accorded approval in principle for the re-organisation of TNEB by the establishment of a holding company, by the name TNEB Ltd and two subsidiary companies, namely Tamil Nadu Transmission Corporation Ltd (TANTRANSCO) and Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) with the stipulation that the aforementioned companies shall be fully owned by Government. The Govt. have also constituted a Steering Committee to finalise the transfer scheme for the re-organisation of Board under section 131 of the Electricity Act, 2003.
2. Service Contract was placed to M/s Feedback Ventures Private Limited, Mumbai for “Consultancy Service for restructuring of TNEB” on 02.04.2009.
3. In the G.O Ms No 38 dated 21.05.2009 , the Government of Tamil Nadu has permitted to register the Tamil Nadu Transmission Corporation Ltd (TANTRANSCO). TANTRANSCO has been incorporated on 15.06.2009.
4. The Certificate of commencement of business has been obtained for the TANTRANSCO on 11.12.2009 and subsequently TANTRANSCO has been inaugurated by the Honourable Chief Minister of Tamil Nadu on 14.12.2009. The orders for appointment of Board of Directors for the TANTRANSCO have been issued by GoTN on 11.12.2009 and Chairman, Managing Director, Director-Transmission Projects, Director-Finance have assumed office on 14.12.2009. Director-Operation was posted on 05.04.2010 and assumed office on 08.04.2010.
5. In the G.OMs No 94 dated 16.11.2009, the Government of Tamil Nadu have permitted to register the Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO) and TNEB Ltd. TANGEDCO and TNEB Ltd have been incorporated on 01.12.2009. Certificates for commencement of Business have been obtained for TNEB Ltd. and TANGEDCO on 12.03.2010 and 16.03.2010 respectively. The order for appointment of Board of Directors for the above companies have been issued by Government of Tamil Nadu on 05.04.2010 and Chairman cum Managing Director, Director – Projects, Director-Generation and Director Finance have assumed office on 08.04.2010
6. The draft transfer scheme has been prepared and submitted to Government of Tamil Nadu for approval.