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.