Chennai, Nov 28 (IANS) The Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) Wednesday agreed to pay within two months its dues to the members of Tamil Nadu Spinning Mills Association (TASMA) who own wind mills in the state, an association official said.
"The TANGEDCO Wednesday agreed before the Madras High Court that it would settle the entire dues to our members within two months from today (Wednesday). The dues are towards encashment of unutilised banked power units as on 31.3.2011 and 31.3.2012," 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 or encash the same.
TASMA had filed a case in the high court seeking TANGEDCO to offset the current power consumption charges out of its long pending dues. TASMA members account for around 3,500 MW of wind power installed in the state.
"Though offsetting would be ideal for our members as they will not have to pay now, we did not press our demand further as TANGEDCO has given the court an undertaking to settle our members' dues in two months," Venkatachalam said.
He said the matter would again be taken up before the court if TANGEDCO fails to settle its dues to TASMA members in two months time.