Chennai

Govt. under fire for buying a unit of power at five times the price

S. Ramadoss. File   | Photo Credit: E. Lakshminarayanan

PMK founder S. Ramadoss said on Sunday that buying a unit of electricity for as high as ₹20 would destroy Tangedco, which is already reeling from severe financial stress.

In a statement, he said buying one unit of electricity for five times the normal price when the gap between demand and supply is increasing day by day would be harmful.

“Electricity generation from wind has decreased from 7 crore units last December to 2.3 crore units this year. Solar power production has decreased from 2 crore units to 1.2 crore units. In the coming days, wind and solar power production will come down further. In the last few days, around 2,850 MW has been bought, and on October 14, one unit was purchased for a minimum of ₹17.77 and a maximum of ₹20. Tangedco is paying the price for not predicting the demand,” he said.

Dr. Ramadoss said the Minister for Electricity had admitted that there would be a deficit of 2,500 MW, and had said efforts were being made to procure power at ₹2.61 a unit. “However, it is doubtful whether one unit of power can be bought for ₹2.61. Tangedco has ₹1.59 lakh crore in debts. It should try to reduce the debt burden and not increase it.”


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Printable version | Dec 8, 2021 2:30:01 PM | https://www.thehindu.com/news/cities/chennai/govt-under-fire-for-buying-a-unit-of-power-at-five-times-the-price/article37046758.ece

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