Tamil Nadu: 5 years on, Energy Minister Nirmalkumar seeks to revive Uppur works

CHENNAI: After over five years since the works came to a standstill on the Uppur Supercritical Thermal Power Project, the State government has initiated steps to revive the long-pending venture, with Minister for Energy Resources R Nirmalkumar announcing a comprehensive review before finalising a roadmap.

Addressing reporters on Tuesday, the minister said the government would undertake a detailed assessment of the stalled project over the next few weeks and take a final decision after examining all pending legal, technical and financial issues.

“The government’s objective is to revive the Uppur thermal power project. After a comprehensive study, we will present a clear report on the timeline, implementation plan and the steps to be taken,” he said.

He said all pending issues relating to the project would be reviewed and resolved as part of the exercise before the government announces its revival strategy.

The Rs 12,778-crore project envisages setting up two 800 MW supercritical thermal power units at Uppur in Ramanathapuram district. The Tangedco had spent Rs 2,283 crore when the power project was shelved in April 2021.

The project was suspended following an NGT (Southern Zone) order in March 2021. Citing the NGT order, land acquisition issues, litigation by local fishermen, and the pending Balance of Plant package, the Tangedco Board in April 2021 approved shifting the proposed 2x800 MW project to the Udangudi site as Stage III (in Thoothukudi), while treating Uppur as a fresh project after all legal issues were resolved.

Although Tangedco challenged the NGT order before the Supreme Court and obtained a stay in July 2021, the project remained in limbo. Subsequent reviews by a high-level committee and consultant Ernst & Young recommended developing the project at the original Uppur site.

However, the Tangedco Board sought further examination of the consultant’s findings, delaying a final decision.

In August 2024, SBI Capital Markets Ltd was appointed to prepare a detailed feasibility report to execute the project under the public-private partnership (PPP) model. The report subsequently explored reviving the project through a joint venture with the National Thermal Power Corporation and NLC India Ltd. However, both public sector companies declined to participate, citing the high cost of power generation.

According to the Central Electricity Authority’s latest thermal project status report in April, the state government is now examining the possibility of utilising the high-value equipment already procured for Uppur in the proposed thermal power project in Thoothukudi district. Now, the minister said that the project is likely to be revived.