Latest news with #ETPSExpansionThermalPowerProject
The Hindu
2 days ago
- Business
- The Hindu
Coal linkage recommended for development of Ennore Thermal Power Station expansion project
The Standing Linkage Committee (Long-Term) for Power Sector, under the Union Ministry of Coal, has recommended earmarking of coal linkage under the revised policy, for developing the stranded 660-MW Ennore Thermal Power Station (ETPS) expansion project in Chennai. Tamil Nadu Power Generation Corporation Ltd (TNPGCL) had requested to earmark long-term coal linkage as per the revised Shakti Policy 2025 for coal allocation, under the provision which allows conduct of tariff-based competitive bidding to develop and procure 660 MW from the stranded ETPS expansion project, as per the minutes of the discussion of the Standing Linkage Committee. TNPGCL further said they have surrendered the coal linkage allocated earlier to the project under the erstwhile Shakti Policy and the surrender has been accepted by Coal India. It further stated the 660-MW ETPS expansion plant is a non-pithead (thermal power plants are situated at a distance from coal mines), is a brownfield expansion project and is 100% domestic coal-based power plant, as per the minutes of the meeting. The Central Electricity Authority (CEA) noted that the coal linkage for the project has been recommended based on the Resource Adequacy Plan accepted by Tamil Nadu. As per the Resource Adequacy Plan prepared by CEA, Tamil Nadu has planned contracts for 6,486 MW from thermal capacity till fiscal 2029-30. Further, the State is required to tie-up additional 7,000 MW from thermal capacity till fiscal 2034- 35. To meet the required 7,000 MW of additional coal-based capacity, TNPGCL has now decided to develop the stranded ETPS expansion project under public-private partnership (PPP) mode, according to the Union Ministry of Power. The Union Power Ministry also recommended earmarking of coal linkage for the project as per the revised policy. NITI Aayog, Ministry of Railways and NTPC have also recommended earmarking of coal linkage to the project, subject to fulfilment of the conditions of the revised Shakti Policy, as per the minutes of the meeting. Coal India Ltd. shall identify and intimate the coal source to Tamil Nadu indicating the quantity, likely mode of dispatch and representative quality of coal. Successful bidder shall be identified by TNPGCL within 1 year from the date of earmarking of coal linkage, failing which the earmarked coal linkage may lapse, the Standing Linkage Committee said. As per the State Energy Department's policy note for 2025-26, ETPS Expansion Thermal Power Project has faced significant challenges over the years. Two engineering, procurement, construction (EPC) contractors (Lanco Infra Tech Ltd. and BGR Energy Systems Ltd.) were terminated due to slow progress and poor performance, it said. A purchase order was issued to SBI CAPS on September 2, 2024 for engaging transaction advisory services for the preparation of feasibility report for the execution of 1x660 MW ETPS Expansion project from 'as is where is basis condition' through PPP mode. Pre-draft Detailed Feasibility Report (DFR) has been received from SBI CAPS and is currently under review, the policy note added.
The Hindu
20-07-2025
- Business
- The Hindu
TNPGCL keeps all options, including PPP, open to execute 660-MW Ennore Thermal Power Station expansion project
Tamil Nadu Power Generation Corporation Ltd (TNPGCL) has kept all options open for developing the stranded 660-MW Ennore Thermal Power Station (ETPS) expansion project including public private partnership (PPP) route, as the Union government's revised policy for coal linkages has provisions for projects selected through tariff based competitive bidding. As per the State Energy Department's policy note for 2025-26, ETPS Expansion Thermal Power Project has faced significant challenges over the years. Two EPC contractors ( Lanco Infra Tech Ltd and BGR Energy Systems Ltd ) were terminated due to slow progress and poor performance, it said. Considering the present energy scenario it has been envisaged to execute the project under PPP mode. A purchase order was issued to SBI CAPS on 02.09.2024 for Engaging Transaction Advisory Services for the preparation of Feasibility Report for the execution of 1x660 MW ETPS Expansion project from 'as is where is basis condition' through PPP mode. Pre-draft Detailed Feasibility Report (DFR) has been received from M/s. SBI CAPS and is currently under review, the policy note added. However, earlier there was one hindrance for the project to be executed under the PPP mode. According to agenda for a meeting of Southern Regional Power Committee, the Union Ministry of Coal had informed that coal linkage will not be allotted to projects under PPP mode or those implemented by private companies and Coal will only be allotted if the project is executed by a Central Government entity, State utility, or under a joint venture of such entities. Meanwhile, the Union government approved a revised Shakti Policy 2025 for coal allocation in May this year. As per the Methodologies for allocation and earmarking of coal linkages under the revised policy notified by the Union Power Ministry, Coal linkages may be earmarked to the State Governments looking to tie up power through tariff based competitive bidding. State Governments may allocate the earmarked coal linkage to Thermal Power Projects which are under planning or under construction or commissioned or also to projects to be selected through tariff based competitive bidding, it said. Meanwhile, Union Ministry of Power has requested the Standing Linkage Committee (Long-Term) for Power Sector to consider the request of Tamil Nadu government to earmark long-term coal linkage to TNPGCL under the revised policy for conducting tariff based competitive bidding to develop and procure 660 MW of power from stranded Ennore TPS Expansion project. TNPGCL has also sought cancellation of the long term coal linkage allocated to the project under the provisions which were applicable to only Central / State generation companies, as per the agenda for the meeting of the Standing Linkage Committee (Long-Term) for Power Sector. A senior TNPGCL said the utility is working with Tamil Nadu Infrastructure Development Board on execution of the project and all options including PPP are still open.
