Power purchase corruption allegation is half-baked, says Minister Nirmal Kumar

Tamil Nadu Minister Nirmal Kumar has dismissed allegations of Rs. 1 lakh crore corruption in power purchases as “half-baked”, stating that electricity is being procured to meet additional demand and prevent power cuts across the State. Speaking to reporters at the Secretariat in Chennai, he said a special arrangement had been made for power procurement during festival seasons such as Deepavali and Christmas. Although 3,500 MW was initially announced, the government planned to procure only 1,000 MW to meet peak-hour demand.
He said electricity purchases between 5 p.m. and midnight would cost between Rs. 5 crore and Rs. 7 crore a day. Thermal power generation costs around Rs. 17 per unit, while gas-based generation can cost up to Rs. 30 per unit. The minister said Tamil Nadu was avoiding power cuts despite outages in Andhra Pradesh and Maharashtra. He added that States, including Tamil Nadu, procure electricity from Central government companies and private suppliers to meet demand.
According to him, the State’s own generation stands at only 5,300 MW, with the remaining requirement met through sources including solar, wind and thermal power. He said the government was examining steps to revive the Uppur power project, where the previous DMK government had invested around Rs. 6,000 crore, and planned to increase output at the Udangudi thermal power station from 660 MW to 800 MW. Nirmal Kumar said tenders were designed to procure only the additional power required. He added that using naphtha at Ennore could cost up to Rs. 47 per unit, making gas-based power procurement preferable. He warned that failing to procure the additional electricity could affect industrial units.
The minister also criticised AIADMK leader Edappadi K. Palaniswami, saying he had been “selected as Chief Minister through a tender process.”