Power projects in Udangudi, Ennore to be commissioned in December 2025

CHENNAI: Works are underway in Udangudi and Ennore SEZ projects with a total capacity of 2,640 MW scheduled to be commissioned by December 2025, while the work has come to a standstill in the Ennore Expansion and Uppur projects.

The Udangudi Thermal Power Project (2X660 MW) would be next to begin generation with scheduled commissioning of December this year for the first unit and March 2025 for the second unit. The work began in December 2018 with a targeted commissioning of the first and the second units in January 2021 and March 2021.

As for the Ennore SEZ Thermal Power Project (2X660 MW) works, units I and II are expected to be commissioned in Sept and Dec 2025. “We’ve speeded up all the ongoing thermal power projects works with strict deadlines to adhere to. We’re monitoring the works periodically,” a senior official said.

However, works on the 660 MW Ennore Expansion and 2X800 MW Uppur projects have reached a standstill. Tangedco has terminated BGRESL’s contract for the construction of Ennore Expansion project after it failed to take up the work in full swing. In August 2023, Tangedco issued a show-cause notice the BGRESL over the slow progress of the works and terminated the contract recently.

The ETPS Expansion project has been delayed due to the EPC contractors. Tangedco awarded the EPC contract to Lanco Infra Tect in May 2014. But, it was terminated on April 9, 2018, after it filed for corporate insolvency and non-performance.

After the cancellation of the EPC contractor, Tangedco floated a fresh tender and awarded the balance of the works contract to BGR in March 2019.

But the BGR failed to submit a performance banking guarantee on time and it led to the withdrawal of the letter of award in April 2021. However, Tangedco reinstated the BGR as the EPC contractor in November 2021 after the DMK government came to power.

A senior Tangedco official said that after cancelling the BGRESL contract, it has encashed the bank guarantee given by the company. “We’re planning to blacklist the company,” the official said. “We’ll call a fresh tender to take up the Ennore Expansion project works.”

The fate of the 2X800 MW Uppur Super Critical Thermal Power Project in Ramanathapuram continues to hang in the balance with the State government having to take a final call on it. After spending Rs 2,283 crore it, Tangedco, citing various hurdles, including a NGT order, land litigation, local fishermen litigation and retendering works, decided to shift it to Udangudi in Thoothukudi in April 2021 during the State assembly polls. The work on the project is yet to commence.

After that, a high-level committee comprising the utility’s directors and consultant Ernst & Young studied the viability of the project and asked Tangedco to go ahead with the works in Uppur itself. But the Tangedco yet again sought the view of former Chief Economic Advisor to the Union government Aravind Subramanian headed a sub-committee on the power sector.

“The committee has submitted its report and we’re awaiting the government’s nod for it,” sources said.