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Web Exclusive | May 2013

Tamil Nadu to enter into power purchase agreements

To bridge the 4,000-mw power shortage in the state, the Tamil Nadu government is entering into long-term power purchase agreements and expediting generation capacity, said the Electricity Minister Natham R Viswanathan in the Assembly last week. Moving the demand for grants to the Electricity Department, the Minister said by the year-end four major projects – TNEB-NTPC joint venture at Vallur, Mettur Thermall Power Project Stage III, North Chennai Thermal Power Station Stage II, and the TNEB-NLC Joint Venture at Tuticorin – will go on stream.

At the Vallur power project, one unit of the 500 mw units has become operational, one is in trial production and the third will be commissioned in October. Tamil Nadu will get 375 MW from each as its share. The Mettur Stage III unit of 600 mw has been generating power consistently since February.

At the North Chennai Stage II project, the second of the two 600 mw units has started trial production and other unit is expected to start by month-end. From the TNEB-NLC unit of 2x500 mw, the State’s share is 387 mw.

One unit is expected to start in December and the other in March 2014. The Tamil Nadu Generation and Distribution Corporation will buy 900 mw from local generators during 2013-14 through short-term agreements, 500 mw from other States, starting June, through medium-term purchases of one to seven years, and about 1,000 mw through long-term purchase for 15 years from October.

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