Tn Incentives To Attract Private Power Producers

In a major effort to speed up private participation in power generation, the Tamil Nadu government has introduced a series of incentives to make the PPA more attractive.

In the recently-floated tenders inviting bids for setting up 20 power stations of 100 mw each, the state government has taken on the responsibility of getting clearances from the Centre for fuel linkages, whether it is from domestic sources or imported supplies. These power projects, which have a short gestation period will be largely based on naphtha, LSHS or fuel oil.

It has also been decided that the PPA will allow for fluctuations for fuel prices and any foreign exchange fluctuation if the fuel is imported. The idea is to make power generation in the state attractive and less-cumbersome for those who come forward to invest in the project,