Tamil Nadu has the worst performing power utility among the four southern states. The Tamil Nadu Generation and Distribution Company (Tangedco) has been rated below average in both operations and financial performance among various power utilities in the country as per a credit rating exercise carried out on behalf of the Union power ministry. While the other three southern states have been graded B+, Tamil Nadu is a notch below at grade B.
The study was conducted by Indian Credit Rating Agency ( ICRA) and Credit Analysis and Rating Research Ltd, two noted credit rating agencies. Tangedco’s score is between 35 and 50 on a scale of 0 to 100. Apart from Tangedco, there are nine other state power utilities that have been graded B.
“Rating of state power utilities has been done to identify their weak areas and advise them on ways and means to correct them,” said P Uma Shankar, secretary, Union power ministry in a statement. At a state power ministers’ conference last year, it was decided to grade power utilities every year to assess their performance. While four power utilities in Gujarat have been accorded A+ grade for top performance, West Bengal and Maharashtra power utilities have secured A grade.
Financial performance gets maximum points in the rating. Reforms carried out by the utilities also form key parameters for grading.
Tangedco’s finances are in shatters. It has a debt of 55,000 crore and is unable to undertake any new project owing to lack of funds. Most financial institutions are also reluctant to fund the debt-ridden utility.
Meanwhile, Tangedco has filed a petition before Tamil Nadu Electricity Regulatory Commission seeking revision of tariffs levied on agriculture and other subsidized sectors.
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