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Many Tamil Nadu power projects in limbo

Many Tamil Nadu power projects in limbo

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CHENNAI: Several renewable and non-renewable projects in Tamil Nadu have either been delayed or are non-starters. Thermal projects like North Chennai, Uppur and Udangudi with a capacity generation of several thousand MW are nowhere near their scheduled date of commissioning. They were scheduled to be completed between 2019 and 2021.

“Foundation for the Ennore expansion project, with a total capacity of 660MW, was laid by former chief minister J Jayalalithaa in 2014. The project was given to Lanco, which is now facing insolvency, and the tender has been cancelled. We will be floating a new tender,” said a senior Tangedco official.

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Most of the projects are expected to be commissioned only in 2021 and if the power demand increases each year by 8% or more, TN may have to depend on power purchase from other sources.

Uppur in Ramanathapuram district, where two units of 800MW each are to be set up, is caught in a land acquisition tangle. “We will have to acquire nearly 360 acres of land but landowners and farmers have approached the court and a stay order is pending. Unless the litigation is cleared, we will not be able to move forward on this project, which is scheduled to be commissioned in 2020,” said the official.

North Chennai super critical unit with a capacity of 800MW is stuck with the National Green Tribunal (NGT). “A petition has been filed by a social activist before the NGT to cancel the environmental clearance issued for the project. Hearing of the case is under process and this project, scheduled to be commissioned next year, may be delayed,” said the official.

Udangudi, where two units of 660MW are to be set up, has been a non-starter since 2012 when Jayalalithaa cancelled the joint venture between Tangedco and BHEL. After tenders were floated, a big fight broke out between Tangedco and a Chinese consortium, which finally was solved by the Supreme Court. The project is scheduled to be commissioned in 2021. “Work for establishing a captive coal jetty was awarded to M/s ITD Cementation India Limited in February this year for Rs 1,902 crore. Land was allotted too, but work is pending,” said the official.

Similarly, the discom has not floated this year’s wind and solar power tenders despite TNERC giving its nod for Rs 3 per unit for solar and Rs 2.65 for wind energy purchase. “Since we gave permission for the power purchase price, the price of solar power has fallen below Rs 3 per unit. We don’t know why no tender has been floated yet for solar and wind,” said a senior TNERC official.

Source: timesofindia.indiatimes

Anand Gupta Editor - EQ Int'l Media Network

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