Natham denies Karunanidhi’s charge on solar tariff validity extension

Chennai: State electricity minister Natham R. Viswanathan on Thursday denied charge of DMK president M. Karunanidhi that solar tariff validity period was extended to help Adani group to set up solar plants. Mr Viswanathan said that solar tariff vailidity period was extended by the Tamil Nadu Electricity Regulatory commission on its own. He said that the Tamil Nadu Generation and Distribution Corporation (Tangedco) has no power to fix solar power tariff.

“The solar power tariff of Rs 7.01 per unit was fixed by the TNERC on September 9, 2014,” he said, adding that the tariff was fixed three members of the commission including, member S. Nagalsamy, who is close to Mr Karunanidhi. It may be noted that Mr Nagalsamy had issued dissenting order to the commission’s decision to extend the solar tariff validity period stating that it would cause financial loss to the Tangedco.

Mr Viswanthan said that Tangedco has signed power purchase agreement with 43 companies to generate 1214 MW including 648 MW from Adani. Dismissing allegation of DMK chief power purchase agreement was only signed with Adani, he said. Tangedco has entered into PPA with 31 small and medium solar generators to produce 436 mw before signing with Adani.

On the allegation of solar power being produced at a cost of Rs. 5.40 per unit in other states, he said that Mr Karunanidhi has failed to mention names of the state where cheap power is available. He also dismissed the allegation that the state would incur Rs 23,000 crore loss if it purchase solar power at a cost of Rs. 5.40 per unit for 25 years. He noted that Central Electricity Regulatory commission has fixed a tariff of Rs. 7.04 per unit for 2015-16 while Gujarat, Bihar and Uttar Pradesh purchase power at Rs. 7.02 to Rs 8.97 per unit.