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The Tamil Nadu government’s decision to lift certain sale restrictions on power generators has actually left major power producers in the lurch rather than opening out the market, according to one of the largest private suppliers to the Electricity Board.
Earlier, the producers were allowed to sell power only to the State utility or to consumers within the State. Now they are free to sell outside this circle.
Ind-Barath Group, which totally operates about 650 MW of power generation supplying power to Tamil Nadu Generation and Distribution Corporation (Tangedco), has taken the issue to the electricity regulator, TNERC.
It demanded that Tangedco continue to buy power from it.
Since October 2014, following a power shortage, the State government restricted power generating stations from selling power to consumers outside the State and insisted that all power be sold to the utility or to open access consumers within the State. But on May 31, after deciding it has adequate power, it revoked the previous order.
Ind-Barath had not been able to participate in tenders called by other State utilities.
Also, the Tamil Nadu government has also only opened out the sector partially, as it says it will review the situation in September.
The company argued that power generation units in Tamil Nadu are not considered consistent suppliers because of such policy shifts.
K Raghu, Chairman and Managing Director, Ind-Barath Power Infrastructure Ltd, told BusinessLine that the group has invested over ₹3,500 crore in Tamil Nadu and the utility owes it over ₹1,000 crore for the power supplied. Tangedco payments were due from June last year, he added.
The State government has lifted restrictions at a time when power distribution companies in Karnataka and Andhra Pradesh have tied up for power and there are no options in the market.
On May 31, the State government passed the order on the recommendations of Tangedco that the total available power generation capacity is 12,500-15,000 MW. In addition, there is wind power capacity of about 2,000-3,600 MW and solar generation of 700 MW.
Surplus power There is a surplus of 300 MW against the anticipated demand from June to October of about 14,000-15,300 MW.
In addition, the State has long-term power purchase agreements of 500 MW, independent power producers on stand-by of about 430 MW, apart from allocation from the Kundankulam nuclear power project.
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