No commercial link with Adani Group companies, says Tamil Nadu Electricity Minister Senthilbalaji

Tamil Nadu Electricity Minister V. Senthilbalaji says that there was no commercial link between the Tamil Nadu Generation and Distribution Corporation (Tangedco) and the Adani Group companies

Tamil Nadu Electricity Minister V. Senthilbalaji on Thursday (November 21, 2024) said that there was no commercial link between the Tamil Nadu Generation and Distribution Corporation (Tangedco) and the Adani Group companies in any manner.

Reacting to the reports on the indictment of industrialist Gautam Adani and seven others in a United States court on charges of fraud and bribery, Mr. Senthilbalaji said that he had read social media posts about the allegations against Mr. Adani. The names of several State discoms, including that of Tamil Nadu, was being mentioned in the posts.

“I make it clear that as far as the Tamil Nadu Electricity Board was concerned, there was no commercial link with the Adani group of firms over the last three years. There was no link whatsoever with the Adani Group in any manner,” he insisted.

Mr. Senthilbalaji said the State government, considering the energy requirements of the State, had entered into memorandums of understanding with companies which were under the control of the Department of Energy of the Central government, to procure electricity.

The MoU with the Solar Energy Corporation of India Ltd was one among the MoUs with Central government owned firms. The SECI Ltd had entered into MoUs with firms producing electricity so as to supply power to the needy States. Depending upon the demands from various States, the SECI Ltd was supplying electricity. The State had entered into an agreement with SECI Ltd for purchasing electricity for 1500 MW. The procurement price was ₹2.61 per unit, which was very low. The State, during the AIADMK regime, paid ₹7 per unit of electricity, he said .

Incidentally, the issue of linking Adani with Tangedco pertains to the discom proposing to purchase 500 mega watt (MW) of solar power through the SECI for which Tangedco had given a power purchase agreement petition to the Tamil Nadu Electricity Regulatory Commission (TNERC) on October 10, 2023.

The proposed purchase of solar power was to fulfill the Renewable Purchase Obligation (RPO) of the State government. The TNERC had passed an order regarding this power purchase petition on May 7, 2024 in which it approved for solar power to be purchased by Tangedco from SECI of 500 MW comprising 200 MW at a tentative cost of ₹2.72 per kilo watt hour (kwhr) and 300 MW at ₹2.73 per kwhr.