TamilNadu is under Rout- Comptroller & Auditor General of India
The Comptroller and Auditor General (CAG) of India has rebuked the Tamil Nadu Electricity Board (TNEB) for procuring power from about 23 co-generation and biomass power plants featuring in the state by steering it via peripheral traders at higher tariffs, ensuing in a loss of Rs 254 Crores in 2009 and 2010.
According
to the CAG report proposed before the assembly on Tuesday, TNEB acquired 1,587
million parts of power from traders in breaking of the directives of the state
government in addition to the Tamil Nadu Electricity Regulatory Commission
(TNERC).
The Tamil
Nadu Generation and Distribution Corporation (Tangedco), a section of TNEB,
used to possess power from co-generation and biomass power manufacturers on the
base of long-term power procure agreements (PPAs) and from power traders via proposals.
Tangedco
accosted the TN government to hold back power production firms from selling
power to any establishment other than Tangedco. The government then controlled
the 23 power generation companies from performing so in February 2009.
Consequently,
Tangedco acquired power to the scope of 1,894 million units at rates sorting
from Rs 4.74 to Rs 6.75 per unit. It also altered the tariff for buying power
from co-generation and bio-mass plants to Rs 3.8 per unit.
The state government declared that the power acquisition from traders was acceptable as the PPAs with co-generation and biomass power generating institutions were kept in abeyance during the specified period. On contrary, CAG said the government`s point was not justifiable.
