TNPGCL Explores PPP Model for 660-MW Ennore Power Station Expansion

Rapid summary

• The 660-MW Ennore Thermal Power Station (ETPS) expansion project in Tamil nadu has faced significant challenges over the years.
• Tamil Nadu Power Generation Corporation Ltd (TNPGCL) is exploring options to develop the stranded project, including public-private partnership (PPP).
• Previous EPC contractors, Lanco Infra Tech Ltd and BGR Energy Systems Ltd, were terminated due to poor performance and slow progress.
• TNPGCL issued a purchase order to SBI CAPS in September 2024 for feasibility study services. A pre-draft Detailed Feasibility Report (DFR) has been received and is under review.
• Coal allocation restrictions previously hindered PPP execution since coal linkage was reserved for projects implemented by government entities or joint ventures with them.
• In May 2025, the Union government revised it’s Shakti Policy to allow state governments earmarked coal linkages through tariff-based competitive bidding, facilitating PPP options for ETPS expansion.
• TNPGCL requested cancellation of earlier long-term coal linkage provisions tied exclusively to central/state entities.
• Discussions are underway with Tamil Nadu Infrastructure Growth Board for execution strategies; all development modes remain open.

indian Opinion Analysis

The Ennore Thermal Power Station’s stalled expansion highlights longstanding infrastructure challenges that could impact state-wide energy reliability in Tamil Nadu. Recent shifts in policy-notably changes under the revised Shakti Policy-offer opportunities to resolve obstacles by enabling private participation through competitive bidding while ensuring critical coal linkages.

However,transitioning such a large-scale energy project requires balancing technical feasibility against broader concerns like efficiency and accountability within PPP arrangements. The inclusion of SBI CAPS as transaction advisors signals intent toward thorough evaluation before establishing development frameworks.

Given India’s expanding power demands coupled with climate and sustainability pressures on thermal stations globally, policymakers must tread carefully so projects like ETPS do not replicate mismanagement while still contributing meaningfully to regional power capacity enhancement.

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