Tamil Nadu Electricity (Reorganization and Reforms) Transfer Scheme, 2010, Amendments to Notification
The Government of Tamil Nadu, Energy (B2) Department, issued Government Order, G.O. Ms. No. 2, on 2nd January 2012 to amend the Tamil Nadu Electricity (Reorganization and Reforms) Transfer Scheme, 2010. The amendments revise how transferred fixed assets were valued, extend the provisional period from one year to two years, and replace entries concerning assets and liabilities vested in three electricity entities, with effect from 1st November 2011.
What the notification does
The Government of Tamil Nadu, Energy (B2) Department, issued Government Order, G.O. Ms. No. 2, dated 2nd January 2012. Acting through the Governor of Tamil Nadu under the Electricity Act, 2003 and the Tamil Nadu Electricity (Reorganisation and Reforms) Transfer Scheme, 2010, the notification changes the valuation and provisional financial arrangements connected with the reorganisation of the former electricity board.
The amendments came into force on 1st November 2011.
Main changes
The amendments to the Tamil Nadu Electricity (Reorganisation and Reforms) Transfer Scheme, 2010 provide that:
- Fixed assets in Schedules A, B and C of the respective transferees were transferred at book value, except for land and turbine machinery of the gas based power plant.
- The excluded land and turbine machinery were revalued using guideline value.
- The revaluation produced a Revaluation Reserve of Rs. 8355.32 Crores, which was adjusted against the accumulated loss of the Board.
- The provisional period in clause 9 was extended from one year to two years.
- Entries for aggregate assets and liabilities were replaced for Tamil Nadu Generation and Distribution Corporation Limited, Tamil Nadu Transmission Corporation Limited and TNEB Limited.
Provisional balance sheets and shares
The substituted schedules treat the opening balance sheets as provisional. They were prepared using the available audited accounts for the Financial Year 2009-10 and treated as provisional balance sheets as on 1st November 2010.
The amounts remain subject to validation, verification, updating and final adjustment during the provisional period. Current assets and current liabilities are also subject to audit and finalisation.
Tamil Nadu Generation and Distribution Corporation Limited and Tamil Nadu Transmission Corporation Limited must issue shares at par to TNEB Limited to the extent of their stated share capital. TNEB Limited must issue shares at par to the State Government to the extent of its stated share capital.
Relevance to landowners and buyers
The land reference concerns the valuation of land transferred as part of the electricity reorganisation. The notification does not state that it changes private land ownership, registration requirements or an individual property owner's title. Its stated purpose is to amend asset valuation, balance sheets, liabilities and share arrangements among the electricity entities and the State Government.
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Common questions
Does the notification change the ownership of my private land?
The notification does not state that it changes any private landowner's title. Its land provision concerns the valuation of land forming part of transferred electricity assets.
How was the transferred land valued?
The notification says fixed assets were transferred at book value, excluding land and turbine machinery of the gas based power plant, which were revalued using guideline value.
When did the amendments take effect?
The amendments came into force on 1st November 2011, although Government Order, G.O. Ms. No. 2, was dated 2nd January 2012.
Are the listed asset and liability figures final?
No. The opening balance sheets are provisional, and the amounts are subject to validation, verification, updating and final adjustment. Current assets and current liabilities are also subject to audit and finalisation.
