Electricity distribution will not be privatised in T.N.: Minister

Electricity distribution will not be privatised in Tamil Nadu, said Energy Minister C.T.R. Nirmal Kumar in Coimbatore on Tuesday.

Addressing the members of various industry associations at a meeting organised by the Confederation of Indian Industry, Coimbatore, the Minister alleged that the Union government was pressurising the States to privatise electricity distribution. However, Tamil Nadu would not do so. The DMK government in the State was heading towards privatisation as the debt of Tamil Nadu’s power sector was ₹2.5 lakh crore. “We need to save the TNEB first,” he said.

The Tamil Nadu Electricity Regulatory Commission will be reconstituted in a couple of weeks and the State government will come out with a policy for Battery, Energy, and Storage (BES) system in two weeks. A co-ordination committee will also be formed soon.

“The previous State government thought it will bring investments to Tamil Nadu from outside. We do not believe in it. We want to develop the existing industries in the State, in places like Coimbatore. We will give you full support,” he said.

In the last 15 years, the State lost focus on developing the local industries. Those who invest in Tamil Nadu from other places look only at profits. Only the home-grown industries know the people and the place, he said.

The Electricity Department will sign a Memorandum of Understanding with IIT – Madras in two days for research and development and new technologies. About 12,000 people will be recruited this year to fill the vacancies in the State utility. The additional expenses that will be incurred because of this can be met. “We have removed all policies that favoured only a few. This year, we will purchase transformers for ₹5,000 crore. As many as 231 new sub-stations will be erected,” the Minister said.

He urged local industries that generate renewable energy to supply to the State grid and also urged them to participate in the Electricity Department tenders. “We are streamlining power purchase and will develop the required infrastructure for the power sector in a couple of years. Each of previous governments lost ₹1 lakh crore because of power purchase. If the cost of power purchased can be reduced by ₹5 a unit, the electricity sector can be revived. However, the immediate pain points of the industry will be studied and addressed. The government has identified 300 large-scale High Tension consumers. They will soon be called for a meeting in Chennai,” he said.