TANGEDCO to Pay Dues For 26.85 MW of Wind Projects

TANGEDCO to Pay Dues For 26.85 MW of Wind Projects

TNERC passed orders in four cases and found TANGEDCO to be at fault at each count

The state distribution company of Tamil Nadu, Tamil Nadu Generation and Distribution Corporation (TANGEDCO) must now swiftly pay pending dues to wind power generators in Tamil Nadu. Dues amounting to Rs.2,40,63,241 are owed by TANGEDCO to wind energy project owners with capacity amounting to 26.85 MW.

In Tirunelveli district of Tamil Nadu, an 18 MW wind project owned by KBD Sugars and Distilleries Ltd. is owed Rs.92,57,052; another 3.75 MW wind project owned by D.A. Sathya Prabha is owed Rs.99,42,227. In Dindigul district, a 0.6 MW wind project owned by D.A. Srinivas is owed Rs.16,67,782 and in Thiruppur district a 4.5 MW wind project owned by KBD Sugars and Distilleries is owed Rs.31,96,180.

These dues have been outstanding since 2010 for power supplied from projects owned by KBD Sugars and Distilleries and since 2011 for the power supplied from other two wind energy projects.

KBD Sugars and Distilleries Ltd., D.A. Sathya Prabha, D.A. Srinivas approached the Tamil Nadu Electricity Regulatory Commission (TNERC) for relief. While going through submissions made by all parties the TNERC found that; prior to the current instance, TANGEDCO had been provided a duration of 60 days to pay outstanding dues in all four cases at an interest rate of 6%.

TNERC observed that the TANGEDCO did not make the payment of dues even after orders were issued regarding the same. Finding the TANGEDCO to be in fault, the TNERC accepted the petitioners prayers in all counts and accepted that TANGEDCO must pay the outstanding amount along with interest calculated at the rate of 10% p.a. for delay. The TANGEDCO must also pay the fees of petitions filed by the wind project owners.

This is another instance of TANGEDCO’s lax approach to payment for renewable energy projects which has derailed the growth of renewables in Tamil Nadu. In the past, after no TANGEDCO tender found takers for consecutive months, the utility had to appoint Solar Energy Corporation of India (SECI) to conduct solar and wind auctions. The most recent large-scale renewable energy project development which happened due to TANGEDCO was NLC’s 709 MW solar PV project.

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Saumy Prateek

Saumy has been a writer with Reuters, Mercom India and Rystad Energy.