Tamil Nadu govt in talks with Adani, others to reduce solar power price

However, the state govt has said that it may not be possible to backtrack from deals signed already

The government of Tamil Nadu has on Monday informed that it is negotiating with solar power producers, including Adani Group, to bring down the price on the back of decline in solar power tariff.

In the Tamil Nadu Legislative Assembly, to a query on whether the government will reduce the price to purchase solar power from Adani Group, Minister for Electricity, Prohibition and Excise P Thangamani said: "it may not be possible to backtrack from a MoU (memorandum of understanding) once it is signed. However, we are in discussion with them to bring down the price."

The government is in talks with companies that have earlier signed the solar power purchase agreement at a higher price as the tariffs have come down due to the technological advancements. And the state may also not be requiring more power as it has met the demand already.

Tamil Nadu Generation and Distribution Corporation (Tangedco), in 2015, has entered into a MoU with Adani Group and others to purchase power at Rs 7.01 a unit for a long term.

The tariff was at that rate while signing the MoU and was also recommended by experts, said the minister.

The deal was criticised by the opposition Dravida Munnetra Kazhagam (DMK), alleging that it would result in a loss to the state government.

The state government would look to purchase solar power at less than Rs 4/unit in the next tender, added the minister.