The Tamil Nadu Generation and Distribution Corporation Ltd. (Tangedco) has written to the National Thermal Power Corporation (NTPC) Limited, asking it to defer implementation of the scheme notified by the Union Ministry of Power to create a common pool of coal and gas-based power plants from central power stations, which have completed over 25 years of operations.
As per the scheme, a single-window system has been created through which the desired State distribution companies, including the existing beneficiaries, shall submit the willingness for power allocation (in terms of period and quantum) within 15 days from the formation of the common pool and enter a power purchase agreement for a minimum of five years from the date on which power is procured.
In a letter to the NTPC, Tangedco’s Chairman and Managing Director Rajesh Lakhoni said the State utility had already raised objections to the scheme at its concept stage. Tangedco has a contracted capacity of 573.46 MW with NTPC generating stations that have completed 25 years of operations. As per the power purchase agreement entered between the two parties, the tenure of agreement is valid till the agreement is formally renewed, extended or replaced, the letter noted.
Tangedco has been availing itself of power since the completion of the generating stations and paying fixed charges liabilities, the letter said, reiterating that the power purchase agreement between Tangedco and the NTPC continues to be in force. Hence, the NTPC cannot unilaterally invalidate the power purchase agreement and request for a new agreement under the scheme citing the notification by the Union Ministry of Power. Tangedco would be in a position to enter into any kind of arrangement only after examination of various options, the letter said. It also asked the NTPC to supply power as per the existing terms.
Tangedco had earlier said the proposals would result in an irreversible burden on the State utility in the long run. It pointed out that the concept note was against provisions of the Electricity Act, tariff regulations and the provisions of the power purchase agreements.
