Tamil Nadu has been allocated 550 megawatt (MW) by the Centre through a scheme of providing electricity to States from stressed power plants.
The allocation will be in force for three years, during which the State will get power at a rate of ₹4.24 paise per unit. For all practical purposes, only the variable cost will be applicable as a mere one paise per unit will be charged as fixed cost, a senior official of the Tamil Nadu Generation and Distribution Corporation (Tangedco) said. The power is expected to be made available by the end of this month.
The arrangement has been worked out as a sequel to the initiative of the Central government to bail out 34 stressed thermal power projects that are having an estimated debt of about ₹1.77 lakh crore. Tangedco will get electricity from IL&FS Energy’s plant in Cuddalore district.
The allocation for the State was made through the process of tender, which attracted responses from different stressed power plants offering 1,900 MW.
The Tangedco official said that the quantum of power to be obtained by the State would be handy, as the peak demand from January to March 2019 will vary from 14,200 MW to 15,300 MW. An indication to this effect has been mentioned in the Central Electricity Authority’s Load Generation Balance Report (LGBR) for 2018-19. Besides, if the campaign for Lok Sabha elections takes place around the time, the demand for electricity will definitely be more as political parties will be liberally using power for their propaganda.