Chennai: After repeated failures of feasibility reviews and revival proposals, the Tamil Nadu Power Generation Corporation Limited (TNPGCL) has again appointed a private consultant — Ernst & Young — to decide whether the multi-thousand-crore Uppur thermal power plant should proceed.TNPDCL officials said the new consultant would suggest ways to use equipment procured for the project, and that the move is not to revive the project.Electricity minister CTR Nirmal Kumar visited the plant site in Ramanathapuram district in Sept and accused the previous govts of wasting nearly ₹13,000 crore on the project, including ₹6,000 crore on equipment.The project, originally planned in 2010 with a cumulative capacity of 1,600 megawatts comprising two 800MW units, got stalled in 2021 due to legal hurdles in acquiring land. The minister said the equipment procured for the project were lying in warehouses and at the site. “Since the equipment has remained unused for a prolonged period, its technical condition, extent of corrosion and possibility of reuse will have to be assessed by the manufacturers and technical experts,” the minister had said.This is not the first time a consultant has been appointed for the plant. In 2021, a high-level committee comprising the then Tangedco directors suggested shifting the plant to Udangudi after it hit a roadblock. However, due to opposition over financial losses, Ernst & Young was appointed as a consultant to study the feasibility of the project at the same site.In 2022, the firm recommended developing the plant at Uppur itself.Meanwhile, the Economic Advisory Council subcommittee led by Aravind Subramanian also studied the feasibility of the plant in 2022, while SBI Capital Markets Ltd (SBI Caps) was appointed in 2024 to prepare a feasibility report.However, the latest appointment of a consultant makes it clear that the corporation no longer intends to develop the plant, and instead plans to move the already purchased equipment to other plants.S Neelakandan, a retired TNEB officer and activist, said the corporation should first declare the present status of the plant and equipment purchased. “Some of the equipment, such as the electrostatic precipitator procured for the Uppur plant, were shifted to the Mettur thermal plant. So, the officials should declare the status of each such equipment — already supplied, to be supplied, and pending tender status, if any. Also, how much expenditure has gone into concrete work and how much machinery should be classified. If the TNPGCL intends to shift the equipment to the proposed Stage III of Udangudi plant, the appointment of a consultant is unnecessary,” he said.TNPDCL to buy 1,000 MW for 7 monthsJust 10 days after floating tenders for short-term power purchase agreements to buy power to the extent of 3,200 megawatts (MW) for six months from Feb to July next year, TNPDCL has floated another tender to buy an additional 1,000 MW for a period of seven months starting Nov. The purchase is aimed at managing the peak-hour shortage between 6 pm to midnight.Uncertainty over the northeast monsoon and the need to overhaul state-owned thermal plants have forced the discom to make short-term power purchases starting in November. Though peak power demand dropped below 19,000 MW on Friday due to rainfall in several districts, officials say demand will spike again, and they must be prepared. Officials hope that lower power costs would be discovered in the latest tender.
