TANGEDCO can buy Rs 3,500-crore worth power from private firms

Tunichi

Editor

posted on 12 years ago — updated on 1 second ago

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The Tamil Nadu Electricity Regulatory Commission (TNERC) has given approval to the Tamil Nadu Electricity Generation and Distribution Corporation (TANGEDCO) to purchase power from private companies at a cost of Rs 3,443.92 crore from October 2012 to May 2013.

The nod has been given through an order of the TNERC dated September 28, in an effort to help the TANGEDCO to tide over the power shortage in the upcoming days.

The TNERC said in its order stated that in view of the delay in the commissioning of several ongoing projects, continuing restriction and control measures, prevailing load shedding, failure of monsoon and reduced hydro generation, the Commission deemed it appropriate to approve the TANGEDCO plea through the application no. PPAP No.2 of 2012.

As per the order, the TANGEDCO has planned to purchase power from various private companies in the southern region based in TN, Kerala, Karnataka, AP and Puducherry. “From October 2012 to May 2013, we have planned to purchase 1,300 mw daily. The companies have been determined through tender process for which arrangements had been made by the TANGEDCO,” said an official.

According to the list submitted before the TNERC by the TANGEDCO, 1,300 mw of power would be purchased from companies such as Adani power limited, Power Trading Corporation, Shree Cement from Rajasthan and Orissa, Jindal Power Limited and National Thermal Power Corporation Vidyut Viyabar Nigam Limited (NVVN).

The TANGEDCO had increased the cost from `4.35 to `5 per unit. The budget for the purchase from October to May has been estimated to be `3,443.92 crore. “The ongoing projects are likely to be commissioned during different periods in this year. There is a need to review the quantum of power purchase through short-term procurement duly taking into account the commissioning of ongoing projects,” said TANGEDCO members.

“In view of this, the commission fixes a ceiling of 4000 mn units to be procured through Tamil Nadu Electricity Generation and Distribution Corporation petition as requested.