Ban on inter-State sale of power goes

The move can benefit private power producers as some of them have been requesting the government to remove the ban.

Feeling confident about the availability of electricity, the State government has lifted the five-year-long ban on inter-State sale of power.

The move can benefit private power producers as some of them have been requesting the government to remove the ban.

The restriction was imposed during the initial phase of power shortage in the State.

Through an order of February 2009, all generating plants in the State were required to sell power either to the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) or any other high-tension consumers within the State as per the regulations of the Tamil Nadu Electricity Regulatory Commission (TNERC).

An expert, speaking on condition of anonymity, says the improvement in power supply position has prompted the government to take the decision.

As per an estimate, the State has 18 private power producers who use coal or gas in their plants having an installed capacity of around 1,000 megawatt (MW).

In the last five years, they have been selling power to the TANGEDCO by taking part in bids for power purchase with one-year validity.

Technically speaking, the order can also benefit those firms having biomass power plants or windmills.

Another expert points out that Andhra Pradesh is facing an acute shortage of power, and the order has given the firms opportunities to sell power to any customer in the neighbouring State.