The Hindu : Tamil Nadu News : Government-controlled bodies to fund transmission corporation

Online edition of India's National Newspaper
Tuesday, Feb 05, 2008
ePaper | Mobile/PDA Version

Tamil Nadu

Tamil Nadu

Government-controlled bodies to fund transmission corporation

T. Ramakrishnan

State gives up plan to tap private investment; proposed corporation will adopt the pattern followed by TNEB

CHENNAI: Even as the spadework is under way for formation of the Electricity Transmission Corporation, the State Government has decided to attract investment from institutions functioning under the control of the State or Central Government for the proposed entity, Electricity Minister Arcot N. Veeraswami said on Monday.

The Corporation will be formed for handling power evacuation through inter-State lines, Mr. Veeraswami said. Organisations such as the Power Finance Corporation and the Tamil Nadu Industrial Development Corporation could invest in the new power utility.

Originally, authorities wanted to tap private investment, but later it was decided to seek investment only from the government-controlled institutions.

“The reason why we have decided to drop the idea is that private investors may, in future, demand privatisation of the transmission corporation,” Mr. Veeraswami told The Hindu, after chairing a meeting with senior government officials.

Explaining the rationale behind establishing the Transmission Corporation, he said the State Government approved power generation projects through the mode of merchant power plants to the tune of 25,000 megawatt, in addition to power generation projects of around 10,000 MW to be implemented by the Central and State Governments. By the time these projects were commissioned, the evacuation arrangements should be in place.

The Transmission Corporation would essentially look after this task. Asked whether it was not the job of the Power Grid Corporation of India Limited (PGCIL), a Central Government undertaking, to lay the inter-State lines, Mr. Veeraswami replied that the Central organisation had expressed its inability citing financial crunch. This was why the State Government decided to take up the works.

The proposed Corporation would float bids for laying the inter-State lines for power evacuation. Private companies or even the PGCIL could participate in such tenders. “The Corporation’s functioning will be entirely transparent,” he said. To a query, he said the Government would consider the formulation of a policy document on transmission.

Indicating that the plan of forming the new entity would figure at the next meeting of the Board of Members of the TNEB to be held shortly, On adoption by the Board, the proposal would be submitted to the Chief Minister for approval. The Chairman of the TNEB would also be the Chairman of the proposed organisation. Just as the Electricity Board had members (Generation and Distribution), there would be a Director (transmission) in the new body.

The pattern followed by the TNEB with regard to the composition of other members would also be adopted by the proposed organisation.

Printer friendly page
Send this article to Friends by E-Mail

Tamil Nadu