Chennai, Oct 14:
With Tamil Nadu reeling under frequent power cuts, the Vijay government’s plan to purchase 4,500 MW of electricity from private power producers at a reported rate of Rs 35 per unit has triggered a political controversy, with opposition parties alleging corruption and questioning the decision. Electricity Minister C T R Nirmal Kumar defended the move on Tuesday, citing rising peak demand due to the El Niño effect and a shortage of power in the Central pool.
The principal opposition DMK, AIADMK, PMK and other parties launched a scathing attack on the government, arguing that it should focus on augmenting power generation by accelerating pending thermal power projects instead of purchasing electricity from private producers at such high rates.
Speaking to reporters, Nirmal Kumar said the state had been forced to purchase electricity from the open market as peak demand had risen by more than 30 per cent, from 16,000 MW to over 20,000 MW this year, owing to persistent high temperatures. He also cited the high cost of gas-based power from Assam and the non-availability of electricity in the Central pool.
The Minister said Tamil Nadu did not receive 1,880 MW of power from Neyveli Lignite Corporation (NLC) last month, while only 500 MW was generated from windmills against the expected 3,500 MW due to reduced wind speeds. He said the government was procuring electricity from the open market to tide over the crisis, warning that the state could otherwise face power cuts lasting two to three hours, as in other states.
Although tenders were invited for 3,500 MW, the government would purchase only 1,500 MW, which would be used during peak hours from 6 pm to midnight for 16 days until October 31, Nirmal Kumar said. He added that the previous DMK regime had not signed long-term power purchase agreements during its five-year tenure, forcing the present government to enter into short-term contracts. The government was planning to announce long-term power purchase agreements within this month, he said.
Meanwhile, former Electricity Minister and DMK leader V Senthil Balaji demanded Nirmal Kumar’s resignation, warning that purchasing electricity at such exorbitant rates from private producers in neighbouring states could push the state’s power utilities into an irrecoverable financial crisis.
Senthil Balaji said the present government had cancelled power purchase contracts entered into by the previous Stalin government at rates ranging from Rs 11 to Rs 20 per unit, alleging that they were tainted by corruption. He questioned why the government was now purchasing power at Rs 35 per unit, adding that such rates were not being paid by other states. He said the decision indicated either incompetence or corruption.
Senthil Balaji also played a video clip of Vijay’s election campaign in which the present Chief Minister had alleged corruption in the previous DMK government’s power purchase contracts and demanded an explanation. During the election campaign, Vijay had targeted Senthil Balaji, accusing him of mismanagement and corruption in the Electricity Department.
In a strongly worded statement, former Chief Minister and AIADMK general secretary Edappadi K Palaniswami said the deal could pave the way for privatisation of the state’s power utilities, which were already burdened with debt. He said purchasing electricity at Rs 35 per unit was unprecedented and alleged that the decision exposed the government’s inexperience and administrative shortcomings.
Palaniswami also questioned whether the purchase was a precursor to privatisation of the Tamil Nadu Electricity Board (TNEB). He pointed out that the government had cancelled the previous regime’s contract but was now purchasing electricity at nearly double the rate, alleging that the move raised suspicions of corruption.
PMK president and MP Anbumani Ramadoss warned that proceeding with the deal could impose losses of Rs 1 lakh crore on the TNEB. He urged the government to expedite pending thermal power projects to increase domestic power generation.
In a statement, Anbumani said Tamil Nadu’s persistent power deficit was the result of delays spanning a decade in completing pending thermal power projects.