CHENNAI: The Union government's power generation companies have told the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to clear its power-purchase dues of Rs 4,210 crore at the earliest.
Though TANGEDCO has its own thermal and hydropower generation plants, it has also been buying power from the Centre's power generation companies to meet the daily demand, an official source said. As per the agreement, payment for power purchases should be made within 45 days of the date of billing. But TANGEDCO allegedly violated the rules due to a financial crisis.
"The power utility purchases 7,149 MW a day from Central government-owned power generation companies, including Kudankulam (1,152 MW), Kaiga Nuclear Plant in Karnataka (224 MW), and Neyveli Lignite Corporation (1,769 MW). Besides, TANGEDCO utilises the Centre’s power grid to transmit power. Till May, the power utility’s due is Rs 4,210 crore," the official said.
A senior official told The New Indian Express that Central Transmission Utility of India Ltd (CTUIL) and other power generation companies, on July 4, sent pending bills to southern States. TANGEDCO has been paying two per cent interest for outstanding dues. "Steps would be taken to clear the dues," said the official.