The Tamil Nadu Electricity Generation and Distribution Corporation has tied up with four power producers to procure 1,200 MW for 15 years.
According to reliable sources, the move is in line with the State Government’s announcement to tie up for long-term power purchase under the Case 1 bidding route to tide over power shortage in the State.
The agreement has been finalised with DB Power Ltd to supply 208 MW; Jindal Power 400 MW; Ind Bharat Ltd 500 MW; and Balco 92 MW at Rs 4.91/kwh.
Tangedco had called for bids for the supply of 1,000 MW of power for 15 years from October 1, 2013. It received bids for 3,500 MW from 12 developers.
According to the source, while the option to go for further procurement is possible, the utility is confident that with nearly 2,500 MW of additional capacity likely from its own projects and joint ventures the 4,000 MW shortage can be bridged.
The Case 1 bidding route gives it the advantage of low-cost, a long-term tie-up for power. The bid conditions are as laid down by the Union Government guidelines.
Among the projects that will go on stream soon are the 500 MW third unit of TNEB-NTPC joint venture at Vallur in October and the TNEB-NLC joint venture at Tuticorin where two units of 500 MW are to start in December and March 2014. Tamil Nadu will get 387 MW as its share.