BGRESL to start work on 660 MW ETPS expansion project

CHENNAI: After five years, the physical work on the 660 MW Ennore Thermal Power Station Expansion Project is likely to commence with the handing over of the site to the contractor BGR Energy Systems Ltd (BGRESL).

According to Tangedco sources, the ETPS Expansion project site was handed over to the BGRESL in June and they have started work on the testing of the structures with a team of IIT Madras experts. “After the completion of the tests, the contractor will commence the work, ” sources added.

Interestingly, Tangedco’s tariff petition which was filed on July 13 in TNERC said that the site would be handed over to BGRESL after the submission of bank guarantees. However, Tangedco sources claimed that the company had submitted the bank guarantees (BG) and taken possession of the site in June this year.

Activist and retired Tangedco executive engineer S Neelakanta Pillai questioned why the contract was not cancelled for once again delaying the submission of the bank guarantee.“ The contract for the BGRESL which was awarded the contract for executing the balance works on an engineering procurement construction (EPC) basis in 2019 was cancelled in April 2021 after non-payment of the bank guarantees for 16 months.

Instead of going for a fresh tender, Tangedco through subversion of rules reinstated the contract to BGRESL in November last year. The letter of intent was issued to the company on March 9 this year even then the company had failed to pay the BG as per the tariff petition. The BG should be submitted within a month of issuance of the LOI, ” he said.

The ETPS Expansion project work has been facing delay after delay. Tangedco awarded the EPC contract to Lanco Infra Tech Ltd (LITL) in May 2014. However, the LITL faced financial troubles and work came to a halt in August 2017. Tangedco terminated the contract in April 2018 ever since the project came to a standstill.

With the expiry of the environment clearance for the project, the mandatory public hearing should be held to hear the views of the local people to get fresh EC. Tangedco sources said that the TNPCB has to conduct the public hearing and they would make arrangements for the meeting as when it was scheduled.