CHENNAI: Chief Minister J Jayalalithaa on Thursday released a virtual White Paper on the financial position of the three vital Public Sector Undertakings (PSUs) of the State government - Tamil Nadu Electricity Board, the State Transport Corporations and Aavin. She blamed the previous DMK regime for the current status of these organisations.The CM said the losses of the TNEB which stood at just Rs 4,911 crore during 2005-06, has gone up to Rs 40,659 crore by March 31, 2011. She attributed this to mismanagement by the previous DMK regime. Now, the total liabilities of the TNEB stood at Rs 42,175 crore. If this continues, the liabilities will touch Rs 53,000 crore.The TNEB has availed a loan of Rs 21,385 crore during the year 2010-11 and repaid Rs 15,000 crore towards the principal amount and interest. As such, the TNEB is literally on the brink of bankruptcy. If the situation has to be set right, the TNEB would have to avail more loans, which, however, was barred by the Reserve Bank of India. On its part, the State government has extended the full subsidy of Rs 2,016 crore for the current fiscal in advance. Besides, as ways and means advance, Rs 1,055 crore has been given to the TNEB. Apart from this, Rs 500 crore was given to the board to purchase power from the open market to cope with the power shortage in the State. The State government cannot provide any further assistance to the TNEB.However, the CM announced a bail-out package of Rs 2,000 crore equity to the TNEB, which is facing one of the worst-ever financial crisis in its history. She said the government would also take steps to increase and speed up power production, prevent power theft, ensure proper administration, upgrade infrastructure, prevent losses and streamline the administrative expenses, besides accelerating the pace of the ongoing power projects.Similar is the condition of the State-owned transport corporations. Most of the assets of these corporations have been mortgaged due to the maladministration of the previous DMK regime. The price of diesel, which stood at Rs 18.26 in 2001, has now gone up to Rs 43.95. Besides that, salaries of the employees have increased steeply. As on March 31, 2011, the cumulative losses incurred by these corporations stood at Rs 6,150 crore.Aavin also has been pushed to a similar state of loss. Aavin, which was making profit till 2006, incurred losses after the DMK assumed office in 2006. Despite the fact that the State government was extending an assistance of Rs 17 crore per year to Aavin, Aavin could procure only 22 lakh litres of milk of the 150 lakh litres of milk produced in the State.While private players in the field are offering a higher procurement price for milk, it would be unfair on the part of Aavin to pay a lesser price, she said.
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