Coal Linkage Approved for Ennore Thermal Power Expansion Project

Fast Summary

• The Standing Linkage Committee (Long-Term) under the Union Ministry of Coal has recommended earmarking coal linkage for tamil Nadu’s stranded 660-MW Ennore Thermal Power Station (ETPS) expansion project, adhering to the revised Shakti Policy 2025.
• Tamil Nadu Power Generation Corporation Ltd. (TNPGCL) surrendered earlier coal linkages under the previous Shakti Policy, wich was accepted by Coal India Limited.
• The ETPS expansion is a brownfield, non-pithead 100% domestic coal-based power plant and will be developed through public-private partnership (PPP) mode.
• Resource Adequacy Plans by Central Electricity Authority (CEA) show Tamil Nadu requires an additional 7,000 MW of thermal capacity by fiscal year 2034-35; ETPS falls under this plan.
• NITI Aayog, Ministry of Railways, NTPC, and Union Power Ministry have endorsed coal linkage to ETPS subject to adherence to revised policy conditions.
• Contractors Lanco infra Tech Ltd. and BGR Energy Systems were terminated previously due to poor performance; SBI CAPS has been engaged to prepare feasibility reports for developing the stranded project through PPP mode.

Indian Opinion Analysis

The allocation of coal linkage for the Ennore Thermal Power Station’s expansion indicates renewed efforts toward resolving long-standing challenges in revitalizing this stranded infrastructure. As Tamil Nadu projects significant growth in thermal energy demand over the next decade, integrating brownfield developments into energy planning aligns with strategic resource optimization. That said,PPP models require precise management given past setbacks with contractors and implementation delays.

Reviving ETPS brings dual advantages: mitigating risks posed by stranded assets while supporting high domestic coal consumption policies outlined in Shakti reforms. However, timely identification of bidders within stipulated deadlines will be critical for avoiding further lapses or inefficiencies. Collaboration among key stakeholders like TNPGCL and Coal India could set a benchmark on how states can address future power plant rehabilitation projects effectively.

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