In a report recently released by the Power Finance Corporation (PFC) on the performance of the nation’s power utilities for 2020–21, Tangedco stands second only to Kerala in terms of employee costs, or the amount spent on paying employees’ salaries.
Tangedco, the state-owned DISCOM, spends ₹1.24 per unit of electricity produced compared to Kerala’s ₹2.2 per employee. However, Tangedco pays nearly twice as much in loan interest as Kerala does, while Kerala State Electricity Board’s (KSEB) generation costs are only ₹ 3.5 as opposed to Tangedco’s ₹ 5.4.
One of the primary reasons cited by Tamil Nadu Generation and Distribution Corporation (Tangedco) to justify the recent tariff increase is to cover the cost of electricity generation and supply, which is more than ₹8.5 per unit, but nearly 30% of that amount goes to employee costs and interest.
Tangedco employs approximately 84,000 people, ranging from entry-level workers to chief engineers. Senior cadre officials are paid up to 15% more than other government employees in their respective cadres.
It should be noted that TANGEDCO’s senior officials, who are subject to the government’s pay commission, are receiving wage revisions under the Industrial Disputes Act every 4 years, which should ideally apply only to temporary employees. In addition, it is reported that there are approximately 34 chief engineers, with some thermal stations having two chief engineers. Superintendent engineers and executive engineers report to them, but the work they handle could be done by fewer people.
Tangedco, according to Jaishankar of the CITU-affiliated Central Organisation of Tamil Nadu Electricity Employees (COTEE), should blame itself but no one else for the higher employee costs.
He said, “The utility does not allow thermal stations to run to their full capacity and back down the production when power is available cheaper in the market. Also, the distribution of work to the senior officials could be achieved through talks. But the utility wants to do it on its own without consulting with employees, which is opposed. And the same is work outsourced for a bigger expenditure.”
(with inputs from ToI)
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