The Indian Chamber of Commerce and Industry, Coimbatore, whole heartedly on behalf of its Members, welcomed the decision of Tamil Nadu Generation and Distribution Corporation (TANGEDCO) seeking state nod for trifurcation to manage debt. TANGEDCO trifurcation is with three distinct utilities being formed for Generation, Distribution and Renewable Energy.
This decision has been taken by the Board of Directors of TANGEDCO, based on the recommendation from consulting firm Ernst & Young.
The process of splitting the Company along with the distribution of manpower is done mainly to reduce the loan burden on the utility.
When TANGEDCO is separated into different Companies, the workflow and decision-making process will be simple. This will also help to double the installed capacity of renewable energy to meet 50% of energy needs. The formation of a new company for renewable energy would help get loans for these projects.