Tamil Nadu   

Private projects can sell power under Electricity Act

CHENNAI: The Union Government has made it clear to State Governments that private power projects can tie up sale of power as per the provisions of the 2003 Electricity Act and the 2006 Tariff Policy.

According to a communication to the Secretaries of the Energy Departments in the States and the Union Territories, project developers can respond to tariff-based bids from distribution companies. Alternatively, they can make use of open access for transmission and operate as merchant power plants selling directly to a consumer or to a distribution licensee for short-term sales or an electricity trader.

They can function as captive/group captive power plants wheeling surplus power to open access consumers or distribution companies in short-term, using the system of open access in transmission. Surplus power will be determined as per the 2005 Electricity Rules.

The clarification comes in the wake of enquiries from several States for allowing the implementation of power projects through the Memorandum of Understanding route. Such projects include those to be based on imported coal. The enquiries followed requests from entrepreneurs.

According to the communication, the power plants could also operate as captive plants and the power can be consumed by owners in terms of the provisions of the Act and the Rules.

Citing Section 7 of the Act, the Centre says a generating station may be established, operated and maintained without licence under the Act. The States can assist the developers through MoUs in securing land, obtaining the requisite environment and other clearances, and achieving financial closure.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Mounds of woes
Way cleared for garbage yard
Held for selling arrack
Rally reaches Krishnagiri
Polluted Noyyal leaves Karur ryots in distress
Panchayat staff to be trained in maintenance of accounts
Power shutdown today
Animal Husbandry dept. opens office
Non-farm loans: Govt. extends last date
Busts of Marx, Periyar, Ambedkar opened
Four-laning work of NH-7 at Krishnagiri progressing
Adam’s Bridge is a tombolo: Raja
Protest at Pollachi
Assembly salutes KSEB staff
Protect Lankan Tamils
A direct command
Talk on ‘Fuelling future cars’
Be cautious while surfing Net, Letika Saran tells students
Invitation for launch of ‘Kandasamy’ not commonplace
Mettur level
Water released from Vaigai dam
Boy drowns in pond
Over 30 construction workers hospitalised
Sexual abuse case
Go for variety of economic activities, women SHGs told
Plea to streamline sand quarrying
Pollachi observes bandh against merger move
CBI arrests two constables in paper leakage case
Private projects can sell power under Electricity Act
Corridors of excellence planned across State
Manora fort to get a facelift
State Election Commission to have a new building
81 entrepreneurs allotted land in Perambalur estate
Court seeks details of land acquisition for airport projects
Karunanidhi wants contributions of statesmen to be highlighted
“Sonia, Manmohan must apologise”

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu