Tamil Nadu government decided to provide a Rs 10,000 crore package to the debt-laden Tamil Nadu Generation and Distribution Corporation (TANGEDCO), 
 in the form of loans or private placement of bonds.
 
 During the current financial year, the capital expenditure of TANGEDCO is about Rs 6,227 crore. For the next year, it will be around Rs 7,000 crore. For mopping up more funds, the power utility has planned borrowings. It is for this purpose that the government's latest order on the private placement of bonds has been issued.  
 
 A few days ago, the State Energy Department issued an order, permitting its non-banking finance company to mobilise bonds through private placement to the tune of Rs 5,000 crore. 
 
 Making use of the government's nod for fresh loans, the TANGEDCO, a couple of weeks ago, secured Rs 500 crore from the Housing Development Finance Corporation (HDFC) at a rate of 12 per cent interest.
 
 As for tapping the remaining Rs 4,500 crore, the power utility has proposed to obtain it through a consortium of financial institutions. Viability reports have been prepared by Punjab National Bank and SBI Markets to enable the infusion of funds.