Central Government scheme offers power developers an annual return of Rs. 12 cr

Six major industries in southern districts of Tamil Nadu are planning to establish high-capacity solar power generating plants under a Central Government scheme.

They have sent their applications to NTPC Vidyut Vyapar Nigam (NVVN), the power trading arm of State-owned National Thermal Power Corporation (NTPC) and the designated nodal agency for Jawaharlal Nehru National Solar Mission (JNNSM). The applications are currently under process with the Tamil Nadu Energy Development Agency (TEDA) providing technical advice to the applicants.

S.E.S. Syed Ahamed, TEDA Deputy General Manager of Madurai Region, told The Hindu here on Wednesday that the annual returns on this project could touch Rs. 12 crore. This scheme plans to generate 150 MW in each financial year from 2010 to 2013.

Highest bidder

With the awareness increasing, the Government has decided to give preference to the highest bidder replacing the earlier practice of ‘first-come first-serve.' Solar power developers would get Rs. 18.45 for every unit generated under this scheme, he said, adding that this was the highest tariff given for power generated through any source. This high tariff was intended to give a boost to this eco-friendly source of power generation.

Solar power plants with capacity ranging between 4.75 MW and 5.25 MW could be developed under this scheme. Companies applying must be worth more than Rs. 15 crore. Connection to the grid must be established through a 33Kv line. Companies can apply only once either through the parent body or subsidiaries.

This transmission infrastructure would be established by the Tamil Nadu Electricity Board (TNEB) with the company reimbursing the cost.

Mr. Syed said that NVVN would be charging Rs. 1 lakh towards processing fee. The solar power developers must pay the TNEB Rs. 5 lakh for the power evacuation certificate for obtaining grid connectivity.

This scheme is part of the Centre's JNNSM, an ambitious project that plans to generate 20 gigawatts by 2020 by establishing solar photovoltaic (SPV) and solar thermal power plants across the country,

Applications to join the scheme, which was announced on July 26, must be filed with the TEDA before August 25. Further information could be obtained by contacting Mr. Syed, TEDA Madurai Regional Office, Telephone No: (0452) 253 5067.

Keywords: solar plants

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