Thermal power projects in Ennore, Uppur to be revived

CHENNAI: In view of the rising power demand, Tamil Nadu Power Generation Corporation Ltd (TNPGCL) is exploring options to revive its stalled thermal power projects at Uppur in Ramanathapuram, and the Ennore Expansion Plant through joint ventures with Central Public Sector Undertakings (CPSUs) or via the Public-Private Partnership (PPP) model.

On Saturday, J Radhakrishnan, chairman, TNPGCL, inspected the 2x800 MW Uppur Supercritical Thermal Power Project site.

Accompanied by project officials and representatives from BHEL and L&T, Radhakrishnan reviewed the status of the Boiler-Turbine-Generator (BTG) unit, the seawater intake and outfall systems, and the material storage facilities. Officials briefed the CMD on the physical progress of completed components, expenditure incurred to date, and the status of statutory clearances. The possibility of transporting coal to the site via both land and sea routes was also discussed during the inspection.

Speaking to DT Next, Radhakrishnan said, “TNPGCL will prefer reviving the two stalled projects through a joint venture with CPSUs such as NTPC and NLC India, given the substantial investments already made. We’ve appointed SBI Caps as a consultant to study the feasibility of reviving them through a JV or PPP model.”

Before the suspension of work in March 2021, the Uppur project (worth Rs 12,778 crore) had achieved 35% physical progress, with an expenditure of Rs 5,847 crore (including interest) during construction. Due to challenges such as an NGT order halting work in 2021, land disputes, litigation involving local fishermen, and the retendering of the Balance of Plant (BoP) package, Tangedco board approved shifting the project to Udangudi, as the 2x800 MW Udangudi Stage-III on April 29, 2021. Since then, the utility has been evaluating revival options through various committees and consultants.

Meanwhile, the Ennore project, launched in July 2014, continues to face prolonged delays. The first EPC contractor, LANCO Infratech, was terminated in April 2018 after declaring bankruptcy, having completed only 18% of the work and incurring Rs 712.26 crore in expenditure. Although another contractor, BGRESL, was subsequently appointed, it too failed to execute the project, leading to the cancellation of the contract.