TNPGCL sets year-end deadline for commissioning of 3 power projects

CHENNAI: Amid the growing dependency on the power purchase from private entities to meet ever-increasing demand, Tamil Nadu Power Generation Corporation Ltd (TNPGCL) has planned to commence commercial generation in three of its power projects – 800 MW North Chennai Stage III, 1320 MW Udangudi Stage I and 500 MW Kundah Pumped Storage – by the end of this year.

The delay in the commissioning of its ongoing thermal power and hydro projects has forced the utility to procure high-cost power, resulting in a steep increase in expenditures.

The Tamil Nadu Electricity Regulatory Commission (TNERC) on March 19 held a review meeting with officials of the TNPGCL, TNPDCL, TNGECL, and TANTRANSCO, regarding the status of ongoing and upcoming generation projects in the State. At the meeting, TNPGCL stated that the Commercial Operation Declaration (COD) of the above-mentioned three projects would be achieved during this year.

North Chennai Thermal Power Station Stage-III (800 MW):

The 800 MW unit, synchronised with the grid in March 2024, is undergoing final trials despite challenges related to coal quality and boiler tube repairs. TNPGCL is also exploring the possibilities of using washed coal to achieve a higher percentage of the plant load factor.

Even after achieving full load generation on June 27 last year, the utility is struggling to commission the supercritical power plant. From January 31, 2025, to March 17, the plant remained under forced outage due to an issue in the boiler tube. It resumed generation on March 19. However, pending Balance of Plant (BoP) works and Flue Gas Desulfurisation (FGD) installation—now extended to June 2026—remain critical tasks. It is expected to be commissioned soon.

Udangudi Thermal Power Project Stage-I (2x660 MW):

The first unit is set for synchronisation in April 2025, with full commissioning of the units anticipated by May 2025. The second unit synchronisation will be in July, and commissioning will be by August. Power evacuation infrastructure is already in place, and coal supply arrangements—including a blend of domestic and imported coal—have been finalised.

For the Udangudi Stage - II and III project, the state government has accorded administrative sanction for the acquisition of 1,500 acres of land, and six revenue units have been formed with the appointment of six Tahsildars, a revenue inspector, and four revenue staff to process the same.

Kundah Pumped Storage Hydro Project (500 MW):

The long-delayed Kundah PSP (4X125 MW) is scheduled for phased commissioning between July and November 2025. The unit-4 will be commissioned in July, while unit-3 in August. The unit-1&2 will be commissioned in November. However, the project awaits forest clearance for 14 km-long transmission lines. Once operational, it will enhance grid stability and support renewable energy integration.

Ennore SEZ Thermal Power Project (2x660 MW):

Delays due to legal disputes and Covid-19 have pushed the project's completion to March 2026, with costs nearly doubling to Rs 18,085 crore from the original estimate of Rs 8,587 crore. The key milestones include synchronisation by December 2025 and commercial operations by March 2026.

ETPS Expansion & Uppur TPP:

Both projects, previously stalled due to contractor failures, are now being pursued under Public-Private Partnership (PPP) models to expedite completion.

Kollimalai Hydro Project (20 MW):

Facing delays due to land acquisition and administrative hurdles, the project is now expected to commence operations by October 2025.

TNERC has stressed the importance of adhering to Central Electricity Authority (CEA) norms in manpower deployment and facilitating completion of the projects in all aspects within the scheduled date of commissioning without any additional cost and time overrun. The Commission also called on TANTRANSCO to prioritise evacuation infrastructure to avoid delays.