Date:24/08/2005 URL: http://www.thehindubusinessline.com/2005/08/24/stories/2005082401451900.htm

Back TN chamber hails move to allow third party sale of power

Our Correspondent

Madurai , Aug. 23

THE Tamil Nadu Chamber of Commerce and Industry has hailed the announcement by the Tamil Nadu Government to allow third party sale of power.

In a statement, the chamber President, Mr S. Rethinavelu, has said this visionary move followed the persistent demand by the chamber and other industrial bodies to allow sale of power generated by private sector power plants, including captive power generating plants, directly to third parties.

At present, power generated through private plants can be sold only to the Tamil Nadu Electricity Board (TNEB). Hereafter, it can be sold to third parties as power can be transferred from one place to another in the State on certain fixed charges, said Mr Rethinavelu.

Third party sale of power will encourage more investment in power production as industries will be motivated to set up more captive power plants besides reducing the burden on TNEB, he said.