TNEB not to be privatised: Minister
Special Correspondent

CHENNAI: The Tamil Nadu Electricity Board (TNEB) would not be privatised upon its reorganisation, Electricity Minister Arcot N. Veeraswami assured the Assembly on Wednesday.

Referring to observations made by R. Viswanathan of the All India Anna Dravida Munnetra Kazhagam and K. Mahendran of the Communist Party of India (Marxist) on the issue, Mr.Veeraswami said the TNEB Chairman would head all the three utilities – TNEB Limited, the Tamil Nadu Transmission Corporation Ltd and the Tamil Nadu Generation and Distribution Corporation Ltd.

Mr Veeraswami said the Centre had made it clear its assistance would not be available unless State Electricity Boards were restructured. So there was no option but to agree to the re-organisation to avail Central assistance, the Minister said, replying to the debate on the demand for grants to the Energy and Personnel and Administrative Reforms departments.

Noting that the average rate of realisation from domestic consumers in Tamil Nadu was less than in other States, he said the rate was 234 paise a unit in the State against 319 in Kerala, 343 in Karnataka, 351 in Andhra Pradesh, 340 in Gujarat, 368 in Delhi and 428 paise in Maharashtra.

The Board’s estimated revenue deficit would be about Rs. 7,100 crore this year, and power purchase from other States was one of the important reasons. On an average, power was being purchased at Rs. 8 to Rs. 11 a unit.

Giving an account of the execution of various capacity addition projects, Mr Veeraswami said the first unit of the Kudangulam atomic power plant was expected to be commissioned by December and the second unit by April.

Referring to a query made by the Pattali Makkal Katchi’s D. Moorthy on the Cheyyur Ultra Mega Power Project, the Minister said Chief Minister M. Karunanidhi had directed the Kancheepuram District Collector to acquire land, which would be done in two to three months. The land would be handed over to the Central authorities.

Approval was given to establish a thermal power project comprising two units of 600 megawatt (MW) at Kattupalli at a cost of Rs. 6,000 crore, he said.

On the Rajiv Gandhi Grameen Vidyutikaran Yojana, Mr. Veeraswami said that of 5.24 lakh below poverty line households to be covered, 2.24 lakh had been covered. The rest would be covered in six months.

On the pay hike for TNEB employees, the Minister said efforts would be made to complete the exercise by December.

When V. Sivapunniyam (Communist Party of India) raised the issue of contract labourers of the Neyveli Lignite Corporation, Mr Veeraswami expressed the hope that a favourable outcome would emerge from the talks to be held on Friday in the city