TN to buy power for summer demand, caps procurement at lowest monthly bids

Chennai: The Tamil Nadu government has opened short-term power procurement tenders to meet the state's rising summer electricity demand from January to June next year, deciding to purchase power strictly at the lowest quoted price for each month.

While bidders quoted rates ranging from Rs 9.50 to Rs 13 per unit, the Tamil Nadu Electricity Board (TNEB) has opted to lock in only the minimum tariff offered per month.

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Minister for Energy Resources and Law C T R Nirmal Kumar, in his "X" social media platform on Saturday, categorically stated that the power utility would not procure electricity at exorbitant rates.

According to the minister, under the approved tariff structure, the state will procure power at Rs 13 per unit in January, Rs 9.50 per unit in February, Rs 10 per unit in both March and April, Rs 9.95 per unit in May, and Rs 13 per unit in June.

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In addition to these interim arrangements, the Tamil Nadu government will soon float tenders to procure power on a long-term contract basis-the first such exercise since 2014, he added.