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Tamil Nadu assures to pay pending dues to wind farm owners by the end of this month

Tamil Nadu has the largest installed capacity in wind with installed capacity upwards of about 5887MW of which about 997MW was installed in the year 2010-11. The overall installed capacity in the year 2010-11 was about 2300MW.

A couple of  weeks ago, the wind turbine manufacturers had announced of a plan to ask for an increase in tariff  from the Tamil Nadu government, Panchabuta had mentioned that developers we spoke to have said that they would like a better payment schedule for their existing wind farms in Tamil Nadu. Most developers that we spoke to indicate that their typical payments are delayed by at least 4-6 months and that affects their projects significantly. It is in spite of these delays that projects continue to get installed in Tamil Nadu.

 IPP  developers that we spoke to indicate that if the payment was better and made as per the terms in the PPA and with  improvement in evacuation facilities, Tamil Nadu could continue to maintain its dominant position in wind installations. It is this position that has led to huge manufacturing bases and jobs in the state something that the decision makes need to consider. With some of the action shifting to Maharashtra and Gujarat in terms of installations, new manufacturing facilities are being located in those states.

We had also mentioned that the Tamil Nadu Electricity Board (TNEB) has not paid for the power purchased from them in the last eight months. The arrears are now a whopping Rs 1200 crore.

Members of about 38 industrial associations, who were present, said the Government should immediately pay arrears to windmill promoters so that investors can install wind mills in Tamil Nadu, instead of going to neighbouring States.

According to reports, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has assured the windmill owners in the State that the pending dues for August, 2010 – September, 2010 for the wind energy supplied to the grid will be paid by the end of this month, according to Indian Wind Power Association chairman, K. Kasthoorirangaian. A co-ordination committee meeting on wind power was held in Chennai on Thursday. The TANGEDCO officials assured the windmill owners at the meeting that the dues for two months would be settled by the end of the month, the dues for October, 2010-December, 2010 would be settled in another month.

Representatives of the windmill owners’ would be included in a committee to be formed to discuss issues related to third party sales, he said.

A meeting of the stakeholders of the windmill sector was held here on Wednesday.

Some of the issues of concern to the windmill owners were the pending dues, and evacuation of the wind energy generated. These were discussed at the co-ordination committee meeting in Chennai, he said.

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