The Tamil Nadu Electricity Regulatory Commission has asked the public sector Tamil Nadu Generation and Distribution Corporation to explain its stance on the delayed Cuddalore PowerGen Corporation project.

This follows a review petition by Cuddalore Power seeking a review of the Commission’s order of August 2016 declining to extend the company’s deadline to achieve financial closure.

In the order passed in August, among the reasons cited including a delay of seven years, the Commission had also mentioned an oral submission by an official from the public sector utility, which has a long-term power purchase agreement with the company, that “considering the prevailing surplus power position in the state, Tangedco is not interested any more in the project and it is for the project to look out for the prospective purchasers for its power if at all the project comes to reality or they have to opt for the bidding route if they desire to sell power to Tangedco.” Cuddalore PowerGen is a ₹6,000 crore project for setting up a 1,320 MW thermal power plant by the promoters of BGR Energy, a listed company. It said that the power surplus condition is not a long-term status and the State government order relating to the prevailing surplus position had said that it would be reviewed depending on supply and demand. Despite the delay, government clearances for the project are in place and land acquisition is progressing.

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