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Home » Finance » Wind power producers seek Rs 1,200 cr dues from Tamil Nadu – write to Prime Minister seeking relief for outstanding payments

Wind power producers seek Rs 1,200 cr dues from Tamil Nadu – write to Prime Minister seeking relief for outstanding payments

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.

In April this year, 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.

In the middle of last month, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) had assured the windmill owners in the State that the pending dues for August, 2010 – September, 2010 for the wind energy supplied to the grid would be paid by the end of last month.

According to reports, Indian Wind Power Association has written to the Prime Minister seeking relief for outstanding payments worth Rs 1,200 crore from Tamil Nadu State Electricity Board (TNEB).

The electricity board owes the money to many wind power generators in Tamil Nadu. The association has about 1,100 members.

In a letter to the Prime Minister, the Indian Wind Power Association has said that Tamil Nadu Generation and Distribution Corporation has not paid for the power supplied by windmills from August, 2010. The corporation is part of the state electricity board.

“(Many) Wind power companies (in Tamil Nadu) have not received payments for energy supplied for many months and the outstanding dues (from August 2010 to May 2011) are about Rs 1,200 crore,” the association Chairman Mr K. Kasthurirangaian told PTI.

The association has also requested the release of Rs 1,757 crore from the clean energy fund for wind power generators in Tamil Nadu. Mr Kasthurirangaian noted this allotment would help wind power firms in meeting their capital expenditures.

The letter said that wind power already generated is not evacuated due to absence of 230 Kv and 400 Kv sub-stations.

“Even though 1,000 MW of windmills have come in 2010-11, they will remain idle during the high windy time of May to October 2011, when domestic, industrial and agriculture (segments) are starved of energy,” it noted.

“The association has written to the Prime Minister seeking help for wind power producers in Tamil Nadu. We are also in discussions with TNEB,” Ushdev Power Holding’s Managing Director Mr Arvind Prasad said.

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