Tamil Nadu’s Minister for Electricity, Prohibition & Excise, V Senthil Balaji, has presented a list of requests to RK Singh, Union Minister for New and Renewable Energy, seeking withdrawal of amendments to the Electricity Act, more allocation of coal, extension of timeline for coal block development, and interest reduction, among others.
Along with Rajesh Lakhani, CMD of Tangedco, and other officials, Senthil Balaji met RK Singh on Thursday to reiterate the Tamil Nadu government’s stand on Electricity Amendment Bill, 2021. In addition, a list of requests with respect to the State’s power sector was presented to the Union Minister for early resolution, according to an official statement.
Balaji requested for increased coal rakes and coal tolling. There is a fuel supply agreement for 23.763 MTPA and realisation is 17.11 MTPA, which is only 72 per cent. To compensate for the requirement, a request was made to allot the entire quantum of FSA (fuel supply agreement) and additional quantum to compensate balance requirement. Further, rakes may be allotted to transport entire linkage coal.
A request was also made for extension of timeline and revision of the time schedule for the development of the Chandrabila Coal Block, as development work was affected due to non-issuance of clearance for exploration in the forest area of the coal block.
About 80 per cent capex of Tangedco has been met through funding from Power Finance Corporation, Rural Electrification Corporation and IREDA. The rate of interest presently being charged by these financial institutions varies from 9.50 to 12.65 per cent, which is on the higher side. Tangedco pays about ₹7,000 crore interest to these institutions every year. The minister requested interest rate reduction to 8.50 per cent in line with equivalent bank interest rate.
Other requests include R-APDRP part B conversion of loan to grant, higher allocation of ₹12,000 crore (as against earlier ₹8,647 crore) for implementation of revamped distribution sector scheme, declaration of Raigarh-Pugalur HVDC transmission corridor as strategic and of national importance, and speeding up of allocation of 1,500 MW through Power Trading Corporation, among others.