Govt Enforces ‘Melt and Pour’ Rule for All Steel in Public Projects Nippon Steel expected to finalize U.S. Steel acquisition at $55 per share NMDC Limited reports a 38% drop in Q4 FY24 consolidated net profit RINL to Raise $23 Million Through Land Sales Amid Crisis
Tamil Nadu Government's decision to unbundle its energy distribution company, TANGEDCO, aims to enhance efficiency. However, concerns linger regarding funding losses and pension liabilities. Forming three companies, including Tamil Nadu Green Energy Corporation Ltd (TNGECL), presents challenges and opportunities.
TNGECL's incorporation as a wholly-owned subsidiary of the holding company TNEB is expected to fast-track energy transition plans and improve liquidity. However, questions remain about funding TANGEDCO's accumulated losses, estimated at ₹1,50,000 crore, and loans of ₹1,60,000 crore.
Industry analysts suggest that TNGECL should have a clean balance sheet to raise funds at competitive rates for energy transition projects. The unbundling process, long overdue, aims to enhance efficiency and governance by separating generation and distribution. Separate entities can make informed decisions regarding power purchases and sales, potentially improving operational efficiency.
Despite a tariff hike, TANGEDCO's performance suffered due to poor planning in power purchases and lower plant load factors in thermal stations. Alongside unbundling, there's a need for stronger demand forecasting to optimise power purchases and boost generation.
In conclusion, while TANGEDCO's unbundling presents financial restructuring challenges, it also offers opportunities for enhanced efficiency and better governance in the energy sector.
Also Read : Indian MOIL aims to expand manganese mining footprint beyond existing leaseholds Coal Ministry will fulfill 874 MT coal requirement for power sector in FY25
Servotech Power Systems Ltd (SPSL) recently announced a significant achievement by securing a contra...
Large Corporate 31-Jan-2024
China’s March steel production surged 8.5% YoY to 95.7 MT. Rebound driven by downstream deman...
China 24-Apr-2025
Union Minister Dr Jitendra Singh has disclosed that India's nuclear power capacity is set for a rema...
Press Releases 07-Feb-2024
At the end of last week, the United States announced an update to the Russian corporate segment of t...
US 27-Feb-2024
India has no restrictions on importing electric vehicles from any country, including China, under a...
Notification 02-Apr-2024
Pralhad Joshi, Union Minister for Coal and Mines, stated that the country's coal production will exc...
Renewables 24-Jan-2024