TNEB hard-pressed to reform itself

Submitted by gagandeep on Wed, 21/01/2009 - 10:43am

TNEB hard-pressed to reform itself T. Ramakrishnan
Centre says it is unable to extend the deadline
CHENNAI: With the Centre again conveying its disapproval to the Tamil NaduElectricity Board of extending the deadline for the Board's re-organisation endlessly, the Board is now compelled to race against time to carry forward the reform further.It has already invited bids to hire a consultant for preparing a transfer scheme. The selection of the consultant will be made shortly, says a senior official. A few days ago, Board Chairman C. P. Singh held discussions with top officials of the Union Power Ministry in New Delhi. On January 9, the time given to the Board for functioning as the State Transmission Utility and Licensee expired. The State government has written to the Centre, urging that the deadline be extended by six more months. The Centre has not yet communicated its decision.Three months ago, the State Energy
Department issued an order, giving‘in-principle approval to the Board's proposalfor re-organising the entity into a holding company, TNEB Limited, and two subsidiary companies, Tamil Nadu Transmission Corporation Limited and Tamil Nadu Generation and Distribution Corporation Limited. A three-member steering committee was constituted, with the Energy Secretary as the chief. The Board formed a sub-committee to assist the steering committee. But there was not much progress. One reason cited was that the Board was busy with the operations to tide over the acute power shortage. Though the State government submitted a road map for the reform process, the Centre was not impressed with it. Appreciating the Board’s difficulties under the present circumstances, Central government authorities, however, want the Board and the State to work on the document again. The official
says the delay in completing the reform process with in atime-frame carries the risk of the Board being declared illegal. Tuticorin project The work on the Rs.4,909-crore 1,000-MW Tuticorin thermal power project,promoted by the TNEB and the Neyveli Lignite Corporation, is likely to be inaugurated by Electricity Minister N. Veeraswami on February 4, the official says.