Chennai, March 17 (BPNS)

Tamil Nadu state government power utility, Tangedco has signed 2900 MW power purchase deals on Wednesday. The power generation and distribution company in a statement said that it has signed power purchase agreements with Neyveli Lignite Corporation, Solar Energy Corporation of India Ltd and Power Trading Corporation of India Ltd for the purchase of power worth Rs 2900 crore. Tangedco in the statement said that Tamil Nadu Chief Minister, M.K. Stalin was present during the power purchase agreement.

State electricity minister, V. Senthil Balaji told BPNS that the Tangedco has signed the power purchase agreement to meet the demand-supply gap. He also said that power purchase agreements have been signed at much lower rates than the previous governments.

The state has an average demand of 15000 MW per year and the peak demand during summer is estimated to be 17000 MW of power. Senthil Balaji said that the Neyveli Lignite Corporation (NLC) would provide 1500 MW of power to the state.

The power purchase agreement with the Solar Corporation of India is for 1000 MW and is signed under the manufacturing linked inter-state transmission scheme (ISTS). Tangedco in the statement said that the cost of power is Rs 2.61 per unit and will meet the power utility’s renewable power purchase obligation. The Solar Corporation of India will provide power to Tamil Nadu from next fiscal onwards, Tangedco in the statement said.

The medium trade agreement with the Power Trading Corporation is for 400 MW of power and per unit of power will be bought at a rate of Rs 3.26 per unit. The agreement, according to Tangedco is for 3 years.