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Uppur project in limbo as Tangedco prolongs viability study

The sub-committee on the power sector formed under the Economic Advisory Council of Chief Minister MK Stalin would be the third committee to study the viability and feasibility of the Rs 12,778-crore Uppur project in the last two years.

Uppur project in limbo as Tangedco prolongs viability study
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CHENNAI: The fate of the 2x800 MW Uppur Super Critical Thermal Power Project continues to hang in the balance with Tangedco yet again seeking the view of Aravind Subramanian- led sub-committee on power reforms after the strategic consultant Ernst and Young recommending a go-ahead at the existing site itself.

The sub-committee on the power sector formed under the Economic Advisory Council of Chief Minister MK Stalin would be the third committee to study the viability and feasibility of the Rs 12,778-crore Uppur project in the last two years. The sub-committee headed by Aravind Subramanian, former Chief Economic Advisor to the Union government, was formed in November last year.

A senior Tangedco official said the economist-headed committee is yet to submit its report on the project. After spending Rs 2,283 crore on the project in Ramanathapuram, Tangedco, citing various hurdles, including NGT order, land litigation, local fishermen litigation and retendering works, decided to shift the project to Udangudi in Thoothukudi in April 2021 during the Assembly polls.

The work on the power project has come to a standstill ever since. After DMK came to power, the review meeting of the energy department chaired by the Chief Minister on July 22, 2021, decided to restudy the shifting of the Uppur project considering the energy demand. Tangedco CMD formed a high-level committee comprising three directors and four chief engineers to restudy the shifting of the project in August 2021. The high-level committee recommended that the project shall be executed in Uppur itself.

However, Tangedco asked the consultant Ernst and Young to study the viability and feasibility of the project. The consultant also concurred with the high-level panel recommendation and submitted its report on January 7, 2022. Tangedco’s board, on March 19, 2022, again wanted to restudy the report. It was referred to the Subramanian- headed panel which has asked for some clarifications from the Tangedco.

G Jagannath
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