No commercial link with Adani Group companies, says Tamil Nadu Electricity Minister Senthilbalaji

The issue of linking Adani with the Tamil Nadu Generation and Distribution Corporation pertains to the discom proposing to purchase 500 mega watt (MW) of solar power through the Solar Energy Corporation of India.

Tamil Nadu Electricity Minister V. Senthilbalaji on Thursday (November 21, 2024) said that there was no commercial link between the Tamil Nadu Generation and Distribution Corporation (Tangedco) and the Adani Group companies in any manner.

Reacting to the reports on the indictment of industrialist Gautam Adani and seven others in a United States court on charges of fraud and bribery, Mr. Senthilbalaji said that he had read social media posts about the allegations against Mr. Adani. The names of several State discoms, including that of Tamil Nadu, was being mentioned in the posts.

“I make it clear that as far as the Tamil Nadu Electricity Board was concerned, there was no commercial link with the Adani group of firms over the last three years. There was no link whatsoever with the Adani Group in any manner,” he insisted.

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Mr. Senthilbalaji said the State government, considering the energy requirements of the State, had entered into memorandums of understanding with companies which were under the control of the Department of Energy of the Central government, to procure electricity.

The MoU with the Solar Energy Corporation of India Ltd was one among the MoUs with Central government owned firms. The SECI Ltd had entered into MoUs with firms producing electricity so as to supply power to the needy States. Depending upon the demands from various States, the SECI Ltd was supplying electricity. The State had entered into an agreement with SECI Ltd for purchasing electricity for 1500 MW. The procurement price was ₹2.61 per unit, which was very low. The State, during the AIADMK regime, paid ₹7 per unit of electricity, he said .

500 MW solar power

Incidentally, the issue of linking Adani with Tangedco pertains to the discom proposing to purchase 500 mega watt (MW) of solar power through the SECI for which Tangedco had given a power purchase agreement petition to the Tamil Nadu Electricity Regulatory Commission (TNERC) on October 10, 2023.

The proposed purchase of solar power was to fulfill the Renewable Purchase Obligation (RPO) of the State government. The TNERC had passed an order regarding this power purchase petition on May 7, 2024 in which it approved for solar power to be purchased by Tangedco from SECI of 500 MW comprising 200 MW at a tentative cost of ₹2.72 per kilo watt hour (kwhr) and 300 MW at ₹2.73 per kwhr.

In the petition, Tangedco, citing the Government of India signing the ‘Paris Agreement COP 21’ to reduce emissions by 2030 by committing to set up 60 giga watt (GW) of solar power and the State having to fulfill the RPO of ‘Other RPO’ (other than hydro and wind) expecting a shortfall of over the years till 2030, had proposed to purchase 500 MW of solar power through SECI. In the petition it had stated that the shortfall would range from 2,177 MW for financial year 2022-23 to 12,957 MW in 2029-30. The Tangedco had agreed to purchase the solar power through SECI to avoid being penalised by the Ministry of Power for ‘non-compliance’ of RPO.

(With inputs from R Srikanth in Chennai)

Published - November 21, 2024 06:59 pm IST