Spinning mills to take TANGEDCO to court over dues

Last Updated: Sat, Oct 27, 2012 16:40 hrs

Chennai, Oct 27 (IANS) The Tamil Nadu Spinning Mills Association (TASMA) will be filing a case in the Madras High Court to direct Tamil Nadu Generation and Distribution Corp Ltd (TANGEDCO) from demanding power charges from its members till it settles their dues, said an association official.

TASMA members account for around 3,500 MW of wind power installed in the state.

"According to the reports available with TASMA, TANGEDCO has to regulate two types of payments. The first one is towards purchase of power generated by windmills owned by TASMA members. The other one is for those who have raised invoices for the encashment of unutilised banked power units as on March 31, 2011 and March 31, 2012," K.Venkatachalam, chief advisor at TASMA, told IANS.

Power banking is like cash banking whereby wind power producers feed in the electricity generated by their wind mills to the state grid and then draw that power for captive use within a year.

TANGEDCO owes around Rs.800 crore under the two heads to TASMA members owning windmills and TASMA wants the former to offset the current power consumption charges out of its long pending arrears.

Venkatachalam said TANGEDCO has started issuing bills for power consumed for this month to be paid by the first week of November.

"If the bills are not settled within that time, then TANGEDCO would disconnect power supply to our member units," Venkatachalam said.

Despite repeated reminders by members of TASMA about their dues, TANGEDO has not replied nor given a firm payment commitment.

Venkatachalam said TASMA members have set up the windmills availing loans and paying interest on that. Defaulting on interest payment due to the dues from TANGEDCO invites penal interest rates from the lenders.

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