On December 24, 2024, the Government of Tamil Nadu issued a notification regarding amendments to the Tamil Nadu Electricity Restructuring and Transfer Scheme, 2024.
These amendments make key changes to the timeline and details regarding the transfer of assets and undertakings by the Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO).
Key Amendments:
Change in “Appointment Date”:
- The definition of the “Appointment Date” has been updated.
- The expression “01.04.2023” is now substituted with “01.04.2024” in Clause (2), sub-clause (b).
Transfer of Undertakings by TANGEDCO:
- In Clause (4), the reference to the “Sixth day of March 2024” in relation to the transfer of undertakings by TANGEDCO has been replaced with the term “appointed date”.
- This change affects the transfer of two key sets of undertakings:
- Thermal Generation Undertakings will be transferred from TANGEDCO to Tamil Nadu Power Generation Corporation Limited (TNPGCL).
- Green Energy Undertakings will be transferred to Tamil Nadu Green Energy Corporation Limited (TNGECL).
- Both transfers will take place on and from the appointed date, which has now been set as April 1, 2024.
Provisional Determination of Asset Values:
- The transfer of the undertakings will be effective from the appointed date. However, the value of the undertakings may still be provisional at the time of transfer and is subject to future finalization, updates, and adjustments in accordance with the provisions of the Scheme.
- Until the finalization process is completed, the transferees (TNPGCL and TNGECL) will continue to operate as agents of TANGEDCO until further orders from the state government.
Conclusion:
The amendments to the Tamil Nadu Electricity Restructuring and Transfer Scheme, 2024 align the transfer process with the updated appointment date and introduce clarity in the timeline for the transfer of thermal and green energy undertakings. This restructuring process aims to streamline the management and operation of Tamil Nadu’s electricity sector by transferring the relevant undertakings to specialized corporations, while ensuring the finalization of asset valuations is done properly.
