In a major effort to extricate Tamil Nadu Electricity Board from a debt trap, chief minister Jayalalithaa has ordered payment of Rs 1,000 crore as immediate advance to the state electricity board to meet its urgent requirements.
The state government will also implement a financial restructuring plan absorbing 50 per cent of short and medium loans, amounting to Rs 9,529 crore, weighing down the EB.
The Rs 1,000 crore assistance is in addition to the Rs 3,020.25 crore given as subsidy by the government to the corporation in 2012-13.
The CM, who reviewed the power situation on September 14, said as per recommendations of Chaturvedi Committee on Financial Restructuring Plan for SEBs, 50 per cent of the short and medium loan component availed by TNEB would be borne by the state government. This would ensure that the financial position of TNEB is streamlined, she said.