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The Tamil Nadu Electricity Board (TNEB) incurred a financial loss of Rs 6,000 crore during 2008-09 and it is estimated to increase by 10 per cent during 2009-10. TNEB chairman C P Singh and board member (accounts) S Kathiresan said the loss was primarily due to the high cost of power purchased from outside.

The loss of revenue due to 40 per cent power cut to industrial consumers was a significant factor. Restrictions were introduced from November 2008 and since then the monthly loss in revenue was about Rs 200 crore.

The input cost and the demand had gone up manifold. The revenue receipt for 2008-09 through sale of power was Rs 19,000 crore. However, the revenue expenditure was Rs 25,000 crore. Out of this, Rs 14,000 crore was spent on buying power from independent power producers and traders.

“The Board gets about 50 per cent of its energy requirements from outside and the rest is met by TNEB’s generating units. The cost of power ranges between Rs 7.50 to Rs 9. The Board bought power from energy traders for Rs 225 crore in February and this month it is to the tune of Rs 250 crore.” Though the tariff was last revised in 2003, the board had no plans to hike it despite the difficulties. TNEB, in association with other agencies, had made huge investments to increase power generation, Singh said.

Source- Hindu