CHENNAI: The revised cost of Tamil Nadu’s 2X660 MW Udangudi supercritical thermal power project has been pegged at Rs 14,571.59 crore, an increase of Rs 1,494.89 crore over the originally approved estimate of Rs 13,076.71 crore. The Tamil Nadu Power Generation Corporation Limited (TNPGCL) has attributed the escalation largely to increased interest during construction and start-up fuel expenses.
The Tamil Nadu Electricity Regulatory Commission (TNERC) has admitted a petition filed jointly by Tamil Nadu Power Generation Corporation Ltd (TNPGCL) and TNPDCL, seeking approval for a capital investment plan of Rs 13,544.07 crore for the first stage of the project in Thoothukudi.
Through a daily order dated October 27, TNERC directed that the petition be hosted on its website to invite objections and suggestions from stakeholders till November 13. According to the petition, the revised cost estimate has been placed before the TNPGCL board for consideration and approval.
While the EPC component has declined from Rs 10,781.87 crore to Rs 10,165.47 crore, the non-EPC component has increased from Rs 383.97 crore to Rs 419.16 crore. The major escalation is in the start-up fuel, interest during construction, and financing charges, which rose from Rs 1,910.87 crore to Rs 3,986.97 crore, an increase of Rs 2,076.10 crore.
The petition states that expenditure on the project had reached Rs 13,544.07 crore as of June 30, 2025, exceeding the original approved project cost. This included Rs 13,382.54 crore spent up to FY 2024-25 and another Rs 161.53 crore during the first quarter of FY 2025-26. Interest during construction alone stood at Rs 2,792.94 crore as of March 31, 2025.
The 2x660 MW project is being executed through two major engineering, procurement and construction packages. Bharat Heavy Electricals Limited (BHEL) is responsible for the main power plant, while ITD Cementation India Limited is executing the captive coal jetty, unloading facilities and pipe conveyor system. The first unit has commenced commercial operation on September 5 this year, the second unit to start generation very soon.
Explaining the time overrun, the corporation cited delays in finalising project management consultants, modifications required to comply with revised emission norms, COVID-19 pandemic and abnormal rainfall during November and December 2021. Land allocation for seawater intake and outfall pipelines, interruptions in the supply of construction materials following a quarry accident in Tirunelveli, and delays in obtaining approvals for soil quarrying were among the other reasons listed.
The petition also attributed delays to BHEL’s failure to deploy adequate manpower, particularly skilled welders and fitters. Changes in vendors for critical systems, including the boiler, coal handling plant and ash handling plant, also affected commissioning schedules.
The project is being developed with a captive coal jetty to receive coal and a captive desalination plant to meet its water requirements.
Stakeholders can send objections or suggestions to: cepr@tnebnet.org
or
send them to
The Chief Engineer/Projects, 5th Floor, NPKRR Maaligai, TNPGCL, Chennai 600002
Mark a copy to the Secretary, TNERC, Guindy, Chennai. Mention ‘Objections – MP. No. 48 of 2026’ in the subject line. Replies will be sent directly to the objectors, with a copy to the commission, within a week