The Hindu Business Line : Don't force power sector reforms on States: TN

TN also sought allocation of 180 MW of more power from Central generating stations in the eastern region and continuation of the supply from NTPC's Kayamkulam station in Kerala for six more months.

Mr M. Karunanidhi

Chennai May 28 Appealing to the Union government to allow States to plan their own schedules for power sector reforms, the Chief Minister of Tamil Nadu today demanded mega power status for state-owned power projects without insisting on privatisation for duty waivers and presented a demand for coal blocks and gas allocation to the Tamil Nadu Electricity Board (TNEB).

Speaking at the Chief Ministers' Conference in New Delhi today, he said that three mega power projects (over 1,000 MW) were planned in the State. They are: a joint venture of National Thermal Power Corporation and TNEB, a joint venture of TNEB and Neyveli Lignite Corporation and a project of Neyveli Lignite Corporation.

The Chief Minister cited that one of the conditions for waiver of duty on imported equipment for the mega power projects was that the State that purchases the power should privatise distribution in all the major cities. He said that collection efficiency of TNEB was over 99 per cent and hence there was no need to insist on privatisation of distribution.

Calling for "protection of gas allocated to TNEB", Mr Karunanidhi demanded that in future all the gas available in Tamil Nadu should be allotted to the electricity board exclusively. He noted that the Ministry of Petroleum and Natural Gas had allocated 4.38 cubic metres of gas to the electricity board, but had instead given away the gas to private firms.

Other demands

Among other demands of the Chief Minister are allocation of 180 MW of more power from Central generating stations in the Eastern region and continuation of the supply of power from NTPC's Kayamkulam station in Kerala for six more months.

Mr Karunanidhi said that 3,500 acres had been identified for an ultra mega power project (over 4,000 MW) near the Vilunthamavadi village in Nagapattinam district. He said that the land, which is a `backward area' could be quickly and cheaply procured and called for an ultra mega power project there. (Under the UMPP scheme, the Central Government creates a shell company, which does all the preparatory work for a project including getting various approvals, and then auctions off the company to a bidder who promises the least tariff.)

Double payment

The Kuttalam gas-based power project has been shut since December 2006 due to an "unexpected breakdown". The gas allocated to the project has been diverted to another project in the State, the PPN project near Cuddalore. However, the supplier of the gas, Gas Authority of India Ltd, insists on `minimum guarantee offtake' payment from TNEB, though the gas is being lifted and used albeit by another project.

Pointing this out, Mr Karunanidhi appealed to the Ministry of Petroleum and Natural Gas to exempt TNEB from the MGO charges. TNEB had spent Rs 400 crore on the Kuttalam project and another Rs 75 crore would be required to put it back in operation, he said.

Coal block

The Chief Minister also demanded Nuangaon coal block in Talcher area, Orissa for TNEB instead of another allocated block Chhattisgarh.

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