Tamil Nadu Electricity and Law Minister C.T.R. Nirmal Kumar has denied reports that the state power utility plans to purchase electricity at as much as Rs. 41 per unit between December 2026 and May 2027, saying the government will not buy power at what it considers excessive rates.
The reports had claimed that the Tamil Nadu Electricity Board, or TNEB, had decided to procure electricity at prices ranging from Rs. 37 to Rs. 41 per unit. Opposition leaders had criticised the reported procurement plan and linked it to the power requirements of the 2027 summer season.
In a message posted on X, Nirmal Kumar said the Tamil Nadu Power Distribution Corporation Limited, or TNPDCL, would not purchase electricity at those rates. He said tenders had been opened and that several companies had quoted high prices, but the government had rejected the idea of buying power at such levels.
The minister said the state currently has sufficient power for the next three months. This assurance places the immediate focus on the gap between near-term availability and the procurement required to manage demand during the 2027 summer period. The minister did not disclose the specific volume of electricity covered by the tenders or the prices quoted by individual companies in the statement cited by Deccan Chronicle.
According to the report, the government had issued tenders to meet its projected requirements for the 2027 summer. The minister described the quoted prices as high and unfair, indicating that the tender process had not resulted in a procurement decision at the reported rates.
The dispute highlights the cost pressure involved in securing electricity for periods when demand rises. A price of Rs. 41 per unit, as reported earlier and denied by the minister, would have represented a major procurement concern for a state utility. However, the available report does not establish the final prices offered by bidders, the quantity sought, or the financial impact that any future procurement could have on TNPDCL.
Nirmal Kumar also said the government would issue long-term tenders to meet power demand for the next 20 years. The proposed long-term procurement process is intended to address future requirements rather than rely only on short-term purchases during periods of elevated demand.
For consumers and the electricity distribution system, the immediate issue is whether sufficient supply can be secured for the summer without exposing the utility to high short-term procurement costs. The minister’s statement confirms that the reported Rs. 37-41 per unit purchase will not proceed, while further details about the long-term tender and the revised plan for 2027 summer supply remain to be announced.
