CHENNAI: A retired TANGEDCO chief engineer has approached the HC to ensure that ‘captive power plants’ (established to utilise majority of the power produced for their own purpose), supply 85% of power generated to TANGEDCO.This comes after an attempt was made by private power generators established under ‘mega power policy’ of the State government to convert their plants into ‘captive power plants,’ after availing monetary benefits to the tune of `100 crore.
Admitting the plea, the first bench of Chief Justice Indira Banerjee and Justice Abdul Quddhose ordered notice to TANGEDCO returnable by April 13.The petitioner, R N Sekar, said that in terms of policy notified dated December 14, 2009 by the Union Ministry of Power, the projects classified as ‘mega power projects’ would be required to supply power up to 85% of its capacity to TANGEDCO through long-term power purchase agreements in accordance with the National Electricity Policy, 2005. “The benefits availed by such power plants which run to over hundred crore, including subsidised procurement of coal, help reducing input costs,” the petitioner’s counsel senior advocate ARL Sundresh said.
“The mega power policy does not envisage promotion of captive power plants for captive users. One of the conditions of the policy is that tariff would be fixed by the State’s regulatory body. But if the private plants are allowed to get converted into captive plants, the regulatory body would not have hold on the tariff.”
According to petitioner, one of the respondents - IL and FS Tamil Nadu Power Company Limited - was reaping benefits but also availed itself of customs and excise duty concessions based on its categorisation as a provisional mega power project plant. He also alleged that TANGEDCO has failed to exercise its statutory functions and take actions against such conversion.