TNGECL projects ₹250 crore surplus, negotiates lower interest rates, and manages renewable energy initiatives in Tamil Nadu.
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JOTHI RAMALINGAM B
The Tamil Nadu Green Energy Corporation Ltd (TNGECL) has projected a surplus of about ₹250 crore for FY25.
Revenue, estimated at around ₹1,700 crore, is primarily generated from the sale of hydro power to the Tamil Nadu Power Distribution Corporation Limited (TNPDCL), along with miscellaneous charges collected from wind and solar developers, as outlined in the latest Policy Note from the Energy Department.
The state-owned enterprise secured its equity share capital, loans, and assets through a Transfer Scheme. After accounting for operational costs—including employee salaries, interest on debt, and maintenance expenses—the company expects to post a surplus.
On the funding front, Tamil Nadu governemnt provided equity share capital assistance of ₹29 crore for the Dam Rehabilitation and Improvement Project (DRIP) in FY 2023-24, and an additional ₹9.55 crore for FY 2024-25.
In a key cost-cutting measure, TNGECL successfully negotiated lower interest rates with its lenders. The Tamil Nadu Power Finance Corporation (TNPFC), one of its principal financiers, reduced its short-term lending rate by 0.85 per cent and long-term rate by 0.60 per cent. This is expected to save TNGECL approximately ₹33 crore annually. Acknowledging TNGECL’s timely debt servicing, TNPFC also extended a prompt payment rebate of ₹105.65 crore in FY 2023-24 and ₹41.50 crore in FY 2024-25, the note said.
In addition to maintaining its existing portfolio, TNGECL will continue to act as the project manager for several upcoming renewable energy initiatives. These include tenders for pumped storage, small hydro, battery storage, as well as ongoing solar and wind projects. This role is expected to yield facilitation charges, contributing further to the corporation’s revenue streams.
To strengthen its presence in the renewable energy market, TNGECL is also seeking a trading license from the regulator.
As part of the broader unbundling process, the Tamil Nadu government restructured its power sector to enhance operational and administrative efficiency and promote renewable energy. The Tamil Nadu Generation and Distribution Corporation (TANGEDCO) was reorganized into two separate entities: the Tamil Nadu Power Generation Corporation Ltd (TNPGCL) and the Tamil Nadu Power Distribution Corporation Ltd (TNPDCL). In addition, TNGECL was established to oversee and manage the state’s renewable energy initiatives.
Published on April 24, 2025