The State government has directed the Tamil Nadu Electricity Board to deal with proposals from promoters of merchant power plants under the provisions of the Electricity Act 2003 on applications for grid connectivity and other technical issues.

Chairman of the TNEB has also been directed to evolve guidelines and publish them in this regard, according to a government order issued by the Energy Department of November 24.

The order stated that letters of facilitation issued to 10 companies in September and December 2007 stood cancelled. This followed the Electricity Regulatory Commission, on petitions filed by eight companies, declaring certain conditions imposed by the government ultra vires of the Act.

In another order, the government disbanded a high-powered committee and a sub-committee, both of which were constituted in August 2007, for scrutiny of various applications received for merchant power plants.

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