Tuesday, October 26, 2010

TNEB will be unbundled into three Companies on 2010 November 1

After dozens of extensions in the past three years, the half century old Tamil Nadu Electricity Board (TNEB) will formally be split into three companies on November 1. On this day, the transfer of assets and personnel of the TNEB to TNEB Limited, Tamil Nadu Transmission Corporation (TANTRANSCO) and Tamil Nadu Generation and Distribution Corporation (TANGEDCO) will take place.

Consumers will in no way be affected by the trifurcation. "Everything will be the same for the consumer except that the bills will now be issued by TANGEDCO. On the whole, the efficiency of transmission, distribution and generation will improve as each new department will be allocated their own funds," said TNEB chairman C P Singh.

However, the government has given the TNEB three years' time for transfer of employees transfer and one year time for the financial transfer. As per the provisional balance sheet as on March 31, 2009 prepared by the TNEB, the net loss for the board was Rs 3,000 crore. This will be transferred to the three companies.

"We have been given one year's time to prepare the balance sheet for the remaining months till date. There are around 83,000 employees with the board and a majority will go to TANGEDCO and nearly 12,000 will be sent to TANTRANSCO on deputation till the final transfer takes place," said a TNEB official.

The state government had decided to unbundle the TNEB into three entities in October 2008 as per the Electricity Act 2003. TANTRANSCO was registered in June 2009 and inaugurated by chief minister M Karunanidhi in December 2009. The other two companies were registered soon after the registration of TANTRANSCO.

1 comment:

Anonymous said...

Similar division is expected in other state electricity boards too. Hope the financial accountability shall improve by this division. Lets wait & watch