The Associated Chamber of Commerce and Industries today urged the Tamil Nadu Government to expedite the adoption of solar power tariff by the State Electricity board along with the approval of power purchase agreements, saying the delay has affected investment proposals.
"Delay in the approval of PPAs and tariff suggested by Tamil Nadu Electricity Regulatory Commission have severely affected investment proposal for solar power projects as lenders (banks) have shown serious concern on tariff and viability of the project", ASSOCHAM Secretary General D S Rawat said in his letter to TANGEDCO Chairman, K Gnanadesikan.
The State's role in solar power generation has lost its momentum considering that there has been a "full year" delay in progress for power purchase agreements and implementation of solar projects, he said.
The TANGEDCO (Tamil Nadu Generation and Distribution Corporation) floated a tender under competitive bidding for procurement of solar power from developers establishing solar power plants in Tamil Nadu based on the Solar policy released by State government in 2011.
For the bidding process the applicable tariff announced was Rs 6.48 kW/h for the first year, with five per cent escalation for first 10 years and fixed rate for remaining 10 years.
The ASSOCHAM has sought immediate intervention of the TANGEDCO to expedite the adoption of tariff and to accelerate the approval of power purchase agreements to boost investor confidence in Tamil Nadu, it added.