Section 9(2)(x) in Tamil Nadu Electricity Grid Code, 2005
(x)Regarding VAR drawal / absorption from Inter State Grid, the SLDC has to follow IEGC. The charge/payment for VARs, shall be at a nominal paise / kVARh rate as may be approved by CERC / TNERC from time to time, and will be between the beneficiary and the Pool Account and between two beneficiaries. The generating stations shall generate / absorb reactive power as per instructions of SLDC, within the capability limits of the respective generating units. No payments shall be made to the generating companies for such VAR generation / absorption.