CHENNAI: The Centre has assured Tamil Nadu that the State will be included in the ultra mega power projects scheme.

Sushil Kumar Shinde, Union Power Minister, told mediapersons on Tuesday, after a meeting with Chief Minister M. Karunanidhi and Electricity Minister Arcot N. Veerasamy here.

At present, the scheme was proposed for seven States, envisaging production of a minimum of 4,000 megawatt in each State at a cost of Rs.16,000 crore. Competitive bidding process would be adopted for the selection of project developers.

Responding to the State's plea, Mr. Shinde wanted the Government to send to the Centre a detailed proposal. "I have given promise [to them that] I will accept [it]."

Asked whether he impressed the Chief Minister upon the need for unbundling the Tamil Nadu Electricity Board (TNEB), he said the subject was not discussed. He went on to add that the appropriate term to be used in the context was "re-organisation," not un-bundling. The concept was accepted in many States. In Andhra Pradesh, where he was the Governor before becoming the Union Minister, this resulted in reduction of power theft.

Responding to another query, the Union Power Minister, who held another round of discussion with Mr. Veerasamy and senior officials in the afternoon, told The Hindu that he had told them that there were several advantages of re-organisation.

The States that were yet to re-organise their power utilities would have to opt for it "one day or the other." He had given Tamil Nadu a few more months.

[According to the Electricity Act of 2003, the TNEB or any State Electricity Boards cannot perform all the functions of generation, transmission and distribution together, because the agency, engaged in transmission, is barred from trading in electricity. Grace period has been provided in the law for transition].

Cauvery hydropower project

Mr. Shinde said Mr. Veerasamy had requested the Centre to take initiative in breaking the deadlock over the Cauvery Hydropower Project, which envisaged two power plants each in Tamil Nadu and Karnataka with a total capacity of 1,150 MW. [The basic dispute between the two States is over the sharing of power that will be produced from the project].

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