The Hindu·4 min read·medium

TNPDCL will incur additional cost of ₹5 crore to ₹7 crore per day for purchase of gas power: Nirmal Kumar

T
The Hindu Bureau
TNPDCL will incur additional cost of ₹5 crore to ₹7 crore per day for purchase of gas power: Nirmal Kumar
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Tamil Nadu's Energy Minister defended the state's decision to purchase high-cost gas power to meet peak demand, citing a lack of long-term contracts from previous administrations. He dismissed corruption allegations, stating that purchases are routed through central agencies.

Why it matters

The debate highlights the challenges of energy security and fiscal management in state-level power distribution.

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Amid the row over the State government purchasing high-cost power, Energy Resources Minister C.T.R. Nirmal Kumar has said only 1,000 MW had to be procured, that too only to meet the evening peak demand, for 16 days from October 15 to 31.

Addressing the media at the Secretariat on Wednesday, he said that in the current situation, where only gas-generated power was available, several quotations had been received for purchasing power at a cost of ₹33 to ₹35 per unit. He said a majority of the gas power was to be purchased only through the central agency, NTPC Vidyut Vyapar Nigam (NVVN), and hence, there was no corruption involved in the purchase.

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