Report of Indian Institute of Public Administration ... - Ministry of Power

INTRODUCTION
TAMIL NADU
The Tamil Nadu Electricity Board (TNEB), one of the well-run electricity boards in
the country, is lagging behind most others in the reform process. It still functions as a
monolithic Board performing all the traditional functions of an electricity Board
namely generation, transmission and distribution. Its generation capacity is 5,400
MW, out of which, 1,987 MW is hydel, 2,970 MW is thermal and 424 MW is gaspowered.
Since most of its hydel stations are rain-dependent, they generate power of
some significance only during monsoon, and the Board uses the stored energy at other
times to meet the peak load shortage. The Board has four thermal power stations with
a total installed capacity of 2,970 MW. Since Tamil Nadu does not have any thermal
coal resources, the Board has to transport it from far-off coalfields through a rail-cumship-cum-rail
route. Transport of coal is a logistical nightmare and also involves
transport of huge quantity of ash over long distances and its disposal later on at a huge
cost with many environmental ramifications. The Board also purchases substantial
power from the Central power utilities. Five Independent Power Projects (IPPs),
which have been commissioned in the State, are also contributing to the financial
woes of the Board. The Board has a good and highly reliable transmission system
(over 99%). Its distribution system is quite large, covering the entire state of Tamil
Nadu. The Board has electrified 94.90 per cent of villages in the State (as on 31 March
2006), and household electrification is also very high (71.18%) due to the Board’s
commitment to give connection to all those who apply for it and the Government’s
policy of free hut service connection. The performance of the Board in this respect has
been driven by the political commitment of successive Governments. The State is
highly industrialised with nearly 70 per cent of its revenue coming from industries.
While the Board has been able to sustain industrial activities in the State, the
industries too have been sustaining the Board by their major contribution to the
Board’s income. The quality and reliability of power to industries is not a major
concern, but the cost is, which is driving industries to go in for alternative sources of
power such as wind energy, captive generation, etc.
PERFORMANCE OF THE BOARD
The performance of the generation wing of the Board can be rated as very good under
all parameters. The PLF of the thermal power stations has been improving over the
years, along with improvements in other parameters, as could be seen from the table
given below: