The Tamil Nadu government is aware of the delays in payments for power producers and will work with the Tamil Nadu Generation and Distribution Company (Tangedco) to address the issue to make projects viable, Vikram Kapur, Principal Secretary, Department of Energy, said.
Speaking at the inaugural session of CII’s ‘Green Power 2017’ on Tuesday, Mr. Kapur said Tangedco could record a “small surplus” this year after many years of losses. “An organisation which had an annual loss of about ₹15,000 crore has been able to bring it down to less than ₹3,000 crore. This year, Tangedco might even be able to break even and show a small surplus,” he said.
“We will work with Tangedco to see that this issue is addressed so as to make projects more viable and also provide comfort to lenders such as the State Bank of India,” Mr. Kapur said.
Bonds to be floated
He also said the Tamil Nadu government will be floating bonds to reduce its debt servicing charges, as it has taken over 75% of the discom’s debt under the UDAY scheme.
Mr. Ramesh Kymal, chairman, renewable energy council, CII-Godrej GBC, said power evacuation and grid integration were major issues facing the renewable energy sector.