Chennai: Rejecting opposition allegations of mismanagement and expensive electricity purchases, Tamil Nadu Minister R Nirmal Kumar on Tuesday defended the state administration's choice to invite short-term power tenders. He pointed to a 30 percent surge in demand driven by persistent El Niño-related heat, alongside shortfalls in wind generation and central allocations, as the primary reasons for the strain on the state grid.
Speaking to reporters at the State Secretariat, Nirmal Kumar stated that electricity demand in the state climbed from 16,800 MW during the same period last year to 21,700 MW, marking an increase of approximately 4,900 MW. He argued that nationwide electricity demand spiked because high temperatures persisted due to El Niño, a phenomenon national forecasts largely failed to predict.
The minister noted that NLC India fell short by about 1,800 to 1,850 MW from the central quota over the preceding month. Furthermore, sluggish wind speeds reduced generation from wind energy agreements from a tied-up 3,500 MW down to just 500 MW, leaving a deficit of 3,000 MW. He explained that these combined shortfalls resulted in roughly 4,850 MW of missing power, compelling the administration to take temporary measures to avert unscheduled load shedding and widespread outages.
Clarifying the parameters of the procurement, the minister for Energy Resources and Law emphasized that the short-term tender applied exclusively to the period between October 15 and October 31. Tenders were initially floated for 3,500 MW to gauge market availability, though the state ultimately plans to purchase only 1,500 MW specifically for peak hours. He added that while expensive gas-based power remains an option on the exchange, officials are carefully monitoring bids to reduce financial burdens while guaranteeing reliable electricity during the Deepavali and Christmas-to-New Year festive seasons.
Addressing political criticism, the minister blamed the previous DMK administration for failing to secure long-term power purchase contracts over the past five years. He highlighted that the state is now launching new long-term tenders for 4,000 to 5,000 MW, alongside five-year contracts for 1,500 to 2,000 MW, with the goal of adding 6,000 to 8,000 MW of capacity by the 2028-29 period.
These remarks came in response to AIADMK general secretary Edappadi K Palaniswami, who previously accused the government of driving the Tamil Nadu Power Distribution Corporation deeper into financial distress and orchestrating a major corruption scandal in procurement. Palaniswami alleged that contracts were awarded to five private firms to acquire 4,400 MW daily from October 12 to October 31 at an average rate of 35 rupees per unit. Additionally, PMK president Anbumani Ramadoss expressed alarm over procurement expenses, warning that acquiring power at 35 rupees per unit from the open market could lead to annual losses exceeding one lakh crore rupees for Tamil Nadu.