The Tamil Nadu Generation and Distribution Company (Tangedco) is in talks with private power producers to extend the medium-term power purchase agreements (PPAs) by two years with a reduced tariff of ₹3 per unit from the current rate of up to ₹5 per unit.
The utility is in talks with Jindal Power, Adani Enterprises and National Energy Trading and Services Ltd (NETS) for a total capacity of 500 MW. “We are negotiating rates to be around ₹3 per unit. We may not require power immediately. We may use it during summer if the rates are good,” a senior official said.
Earlier, Tangedco had a medium-term power purchase agreement with Jindal Power Ltd. and Adani Enterprises Ltd. for procurement of 200 MW of power each for a period of five years from September 1, 2012 to August 31, 2017. The tariff for the power sourced from Jindal’s Chhattisgarh power plant was about ₹4.92 per unit and Adani’s Mundra Power Plant, Gujarat, was nearly ₹5 per unit.The utility also had a medium-term power purchase agreement with NETS for the purchase of 100 MW from Lanco Anpara Power Ltd, Uttar Pradesh, for a period of five years from February 1, 2012 to January 31, 2017, for ₹4.88 per unit.
Spike in demand
In its petition with the Tamil Nadu Electricity Regulatory Commission (TNERC), Tangedco had sought the extension for two years citing an increase in power demand. TNERC had given its nod for the extension of the medium-term PPAs by two years at ₹3.5 per unit.