Tangedco set to resurrect Ennore, Uppur thermal projects
SBI Capital to assess feasibility of the power projects to be executed through PPP
Works in incomplete state at Uppur
CHENNAI: Tangedco has awarded a consultancy contract to SBI Capital Market Ltd to pump life back into two stalled thermal power projects at Uppur and Ennore. The firm will prepare a detailed feasibility report (DFR) for executing the projects on an "as is where is" basis condition through Public Private Partnership (PPP) mode.
"Due to increasing power demand and considering the energy demand-supply scenario of the State in the future, 2x800 MW Uppur Thermal Power Project in Ramanathapuram district and the 660 MW ETPS Expansion project at Ennore have been decided to be revived in an 'as is where is basis' condition through PPP mode," a senior Tangedco official told DT Next.
On March 18, 2021, an order passed by the National Green Tribunal brought the works for the Rs 12,778 crore worth Uppur project to a grinding halt, while the Engineering, Procurement and Construction (EPC) contract of the Ennore Expansion project was terminated on February 27, 2024.
The official explained that, upon receiving the DFR, steps to resume the project, including inviting bids to take up the thermal projects through PPP, will be taken up.
2x800 MW Uppur Thermal Project
The Uppur project achieved 35 per cent physical progress until the suspension in March 2021, incurring an expenditure of Rs 5,847 crore, including interest during the construction.
Considering issues like NGT order suspending work, land litigation, local fishermen litigation and BOP package retendering works, the Tangedco Board on April 29, 2021, has accorded approval to shift the Uppur project to the Udangudi site as 2x800MW Udangudi Stage-III.
Tangedco decided to revive the Uppur project through the PPP mode after three committees - a high-level committee of TANGEDCO comprising three directors, consultant Ernst & Young, and economist Aravind Subramanian headed the sub-committee on the power sector - favoured the thermal projects revival.
660 MW Ennore Expansion project
Tangedco terminated the contract of BGRESL on February 27, 2024, for the construction of the 660 MW Ennore Expansion project after it failed to take up the work in full swing.
BGRESL had executed only 0.56 per cent of physical works and spent Rs 16 crore after its contract was reinstated by Tangedco in November 2021.
BGRESL was originally awarded the contract to complete the balance works of the Ennore Expansion project in March 2019 through a tendering process after the bankrupt Lanco Infra Tech's EPC contract was terminated in April 2018. Lanco was awarded the contract in May 2014, but it executed only 18 per cent of the works, incurring an expenditure of Rs 712.26 crore.