The Hindu Business Line : Tanfac wins tariff case

Tanfac Industries’ captive power plant is set to turn in higher revenue for the company with the Tamil Nadu Electricity Regulatory Commission ruling in its favour categorising its waste heat recovery from sulphuric acid as a non-conventional energy source.

The regulatory commission’s order is also of significance as it could impact similar cogeneration power plants using waste heat recovery and clarifies the TNERC’s policy which does not cover such type of power generation.

Following the order, the tariff for the 2.23 MW captive power plant has been hiked to Rs 3.15 a unit from Rs 2.32 earlier, following the categorisation as a non-conventional energy source-based cogeneration plant, under the power purchase agreement with the Tamil Nadu Electricity Board.

The TNERC’s order follows a petition (M.P. No. 7 of 2008) by Tanfac Industries, which said that the power plant uses steam generated from the waste heat recovered from the sulphuric acid plant. The process of power generation is clean and eco-friendly as it does not use fossil fuel.

The petition stated that the present policy of the TNERC does not cover such type of power generation and prayed that the power purchase agreement be regulated.

Tanfac contended that the waste heat recovery system falls under the non-conventional energy source as specified by the Centre, the technology is superior to biomass plants and had represented to the TNEB to peg the tariff at Rs 3.00 a unit.

Tanfac Industries, an Aditya Birla group company, is among the largest producers of fluoride products in India. The production facility in Cuddalore manufactures anhydrous hydrofluoric acid, aluminium fluoride and specialty organic and inorganic fluoride products.