Hit by hurdles since 2018, thermal power projects in TN go cold

The AIADMK government which came to power in 2011 raising the issue of power cuts and failure of then DMK government to complete power projects on schedule, had lined up five thermal power projects with a total capacity of 7,300 MW and awarded contracts for the first project in 2014 but none has been commissioned yet.

The first to be awarded the engineering, procurement and construction (EPC) contract was the 6,60 mw Ennore Expansion project in February 2014 but the contractor LANCO infra Tech Ltd declared insolvency and the contract was terminated. In March 2019, Tangedco awarded a fresh contract to BGRESL and the project is expected to be commissioned in May 2023, after a delay of 64 months. Sources said that Tangedco erred in awarding the contract to LANCO. “Now the cost of the project has gone up by Rs 3,000 crore,” an official said.

The first unit of the 2X660 mw Ennore SEZ originally scheduled to begin its full load operation by end of March 2018 missed the deadline and is expected to start operation in March 2022. The second unit would be commissioned only in May 2022 after missing its May 2018 schedule.

Another one, the 800 mw North Chennai Stage III project is expected to be commissioned by June next year. This time, Tangedco officials attributed the delay to the pandemic. “We were expecting to commission the power plant by end of this year, but the lockdown delayed the works,” the official added. The 2X800 mw Uppur Thermal power plant work has been held back over court cases while the work on the 2X660 mw Udangudi project was delayed due to slow progress of work by the EPC contractor BHEL.

A senior Tangedco official said that it has appointed consultants to oversee the completion of the projects without any further delay. “The delay was due to various reasons. Now all hurdles have been cleared,” the official added.