Decision on stalled Uppur power project in 40 days, says Minister Nirmalkumar

CHENNAI: Minister for Energy Resources R Nirmalkumar on Saturday inspected the stalled 1,600MW Uppur supercritical thermal power project and said the government would decide its future within 30 to 40 days after assessing its technical, financial and operational viability.

The 2x800MW project, planned at an estimated cost of Rs 15,000 crore, has remained stalled since 2021. Nirmalkumar inspected the construction works, equipment already procured and stored at the site and warehouses, land and infrastructure works, and facilities related to power connectivity.

He discussed the present status with officials and representatives of associated companies, and noted that nearly Rs 6,000 crore had already been spent and a comprehensive assessment was needed before deciding the next course of action.

Nirmalkumar said the condition of equipment that had remained unused for several years would have to be assessed by the respective manufacturers and technical experts. Its technical condition, corrosion and scope for reuse would be examined. The government would also assess whether some equipment could be shifted and used elsewhere and how the civil works already completed at Uppur could be utilised.

Arrangements for transporting coal remain one of the key challenges for the project, he said. Options such as transporting coal by sea or rail, using smaller vessels and storing coal at Udangudi before transporting it to Uppur would be examined. The cost of each option and its impact on the per-unit cost of electricity generation would be worked out before taking a decision.

The minister said significant work had already been completed on bringing water to the project site and considerable expenditure had been incurred on related civil works.

"Within 30 to 40 days, all aspects will be consolidated, and an appropriate decision will be taken, followed by the Chief Minister's approval," he said.

Nirmalkumar said the government needed to take a clear and responsible decision on the project's future considering the investment already made and the works pending, so that public money was not wasted further.

Minister for Environment and Climate Change VK Rajeev, Tamil Nadu Power Generation Corporation managing director M Govind Rao and Ramanathapuram Collector M Sivaguru Prabhakaran were present during the inspection.