Home India Madras High court wants to know Tangedco’s pvt purchase price
Madras High court wants to know Tangedco’s pvt purchase price

Madras High court wants to know Tangedco’s pvt purchase price

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A division bench of Justice N Kirubakaran and Justice P Velmurugan raised the query while hearing an appeal moved by the Tamil Nadu Electricity Consumers Association

Chennai: The Madras high court has asked Tangedco to explain whether it is purchasing power from certain private generators at a higher rate causing loss to the exchequer.

A division bench of Justice N Kirubakaran and Justice P Velmurugan raised the query while hearing an appeal moved by the Tamil Nadu Electricity Consumers Association and others challenging a government order dated April 14, 2018, taking away open access facility to power generators who produce less than 1MW.

When the appeal came up for hearing, the appellants submitted that the state government had entered into an agreement with a solar power generator company belonging to the Adani Group for purchase of power at Rs 7/unit for 21 years, whereas the state is buying power from other generators for Rs 2/unit, which would mean that Tangedco incurs a loss of Rs 5/unit.

Noting that such submission cannot be ignored by the court, the bench issued a series of directions to Tangedco, including filing of a detailed report on such power purchase from private generators for the past 10 years.

The court also wanted to know whether Tangedco has entered into a 21-year agreement with the particular generator at a much higher price causing loss of Rs 5 per unit to the exchequer.

The report has to be filed by September 26.

Anand Gupta Editor - EQ Int'l Media Network

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