Lok Sabha Question No. 4142 (UNSTARRED), answered on 2016-08-11
Subject: Financial Assistance to TANGEDCO
Ministry: POWER
Asked by: NANDI YELLAIAH, RAVINDRA BABU  PANDULA, E. AHAMED

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.4142 TO BE ANSWERED ON 11.08.2016

## FINANCIAL ASSISTANCE TO TANGEDCO

4142. SHRI NANDI YELLAIAH: DR. RAVINDRA BABU: SHRI E. AHAMED:

Will the Minister of POWER be pleased to state:

(a) whether  Tamil  Nadu  Generation  and  Distribution  Corporation  Ltd. (TANGEDCO) has been slipped to grade ''C'' by rating agencies as per the framework approved by your Ministry and if so, the details thereof;

(b) whether Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) are providing financial assistance to State Generation and Distribution Corporations for procurement of energy meters and other electrical equipments;

- (c) if  so,  the  complete  details  of  energy meters  and  other  equipments purchased  by  Tamil  Nadu  Generation  and  Distribution  Corporation  Ltd. (TANGEDCO)  against  the  financial  assistance  provided  by  PFC  and  REC during the last three years;
- (d) whether  any  representations  were  received  from  several  Small Scale  Industries  (SSI)  Units  in  power  sector  regarding  non-payment  of their dues to TANGEDCO for supply of energy meters and if so, the details thereof including the names of such SSI units whose payments have been withheld by TANGEDCO along with the amount due to each one of them; and

(e) whether Power Finance Corporation (PFC) proposes to stop financial assistance/ funding to TANGEDCO for procurement of energy meters till all outstanding payments are cleared and if not, the reasons therefor?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL, NEW & RENEWABLE ENERGY AND MINES

( SHRI  PIYUSH GOYAL )

(a) : As  per  'State  Distribution  Utilities  Fourth  Annual  Integrated Rating' published by Power Finance Corporation (PFC) Ltd., TANGEDCO has been rated 'C+',  downgraded from rating 'B'. Key reasons for  the  rating  of 'C+' assigned  to

.........2.

## TANGEDCO includes:

- (i) Very high level of accumulated losses of over Rs. 65,000 crore as on 31.03.2015
- (ii) Deterioration in AT&C losses, low billing efficiency
- (iii) High power purchase cost
- (iv) Poor Cost coverage ratio owing to continuous higher level of losses year after year
- (v) Tariff petition not filed during the last three years viz. FY 2015, FY 2016 & FY 2017 and no tariff order issued for FY 2016 / FY 2017.
- (b) & (c) : Power Finance Corporation (PFC) Ltd. and Rural Electrification Corporation  (REC) Ltd.  have  sanctioned  distribution  schemes,  which  are composite  in  nature  and  includes  all  infrastructure  works  including procurement  of  energy  meters  and  other  electrical  equipments.    The details of the sanctions to TANGEDCO during the last three years by PFC Ltd. & REC Ltd. are as given below:
- (d) : Shri Salim Ansari, Ex-Hon'ble Member of Parliament, forwarded a representation of M/s. Capital Power System Ltd., Noida and a letter from Shri Ramsinh Rathwa, Hon'ble Member of Parliament have been received regarding non-payment of dues by M/s. TANGEDCO to SSI units. Details of the SSI units with payments due as received from Shri Ramsinh Rathwa, Hon'ble MP to each unit is furnished below:

|         | Sanction        | Sanction         |
|---------|-----------------|------------------|
| YEAR    | PFC Ltd.        | REC Ltd.         |
| 2013-14 | Rs. 2,843 Crore | Rs.1369.88 Crore |
| 2014-15 | Rs.3,167 Crore  | Rs.1145.58 Crore |
| 2015-16 | Rs.3669 Crore   | Rs.1213.67 Crore |

|   Sl. No. | Name of SSI                                  | Total Amount   |
|-----------|----------------------------------------------|----------------|
|         1 | M/s. Avon Meters Pvt. Ltd., Derabassi        | 6.44 Cr.       |
|         2 | M/s. Capital Power Systems Ltd., Nodia       | 9.50 Cr        |
|         3 | M/s. Genus Innovation Ltd., Jaipur           | 2.68 Cr.       |
|         4 | M/s. Landis + GYr Ltd., Kolkata              | 75.00 Lac      |
|         5 | M/s. HPL Electric & Power Pvt. Ltd., Gurgaon | 3.51 Cr.       |
|         6 | M/s. Secure Meters Ltd., Udaipur             | 18.00 Cr.      |

(e) : The energy meter supply is as per the contractual obligations between the contracting suppliers and TANGEDCO. PFC Ltd. has no role to play in any contractual issue between either of the parties.

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