According to reports, Independent power producers are unhappy with the price fixed by Tamil Nadu to procure solar power from them, as they feel it is too low and banks will hesitate to back their projects at that rate.

The state’s power utility, Tamil Nadu Generation and Distribution Corporation Ltd, has fixed Rs 6.48 per kilo watt hour as a negotiable price for its mammoth tender to generate solar power in the energy-deficient state. Almost all successful solar power projects in the country so far have been priced at least Rs 7 per unit.

Tamil Nadu, which is facing a huge deficit of 4,000 megawatts, is betting big on solar, with Chief Minister J Jayalalithaa drawing up an ambitious plan to add 3,000 MW through this route by 2015.

It launched the single biggest solar tender process for 1,000 MW last year, but received a tepid response—bids came in only…