Tamil Nadu UMPP comes with captive port for bidders

The port will handle 12-15 million tonnes (mt) of coal cargo annually

The winning bidder of the 4,000-Mw ultra mega power project (UMPP) in Tamil Nadu will get the rights to develop a minor captive port, with the contract to operate the power project.

The port, to be set up in Panaiyur village a few km away from the project site at Cheyyur, will handle 12-15 million tonnes (mt) of coal cargo annually, which will fire the supercritical power plant.

“The captive port will be part of the overall package for which the companies will have to bid. However, the developer will not be allowed commercial rights over the port apart from importing coal for the UMPP,” a senior Power Finance Corporation (PFC) official told Business Standard.

The official added Coastal Tamil Nadu Power, a subsidiary of the PFC, has received in-principle clearance for use of sea water from the Tamil Nadu Maritime Board. The board has already recommended the proposal for notification of ports limits under the Indian Ports Act, 1908. The environment ministry has also accorded environmental and coastal regulatory zone clearance.

The government has already awarded two coastal UMPPs – Mundra in Gujarat to Tata Power and Krishnapatnam in Andhra Pradesh to Reliance Power. While the Mundra UMPP uses port service from the Adani-owned Mundra Port nearby, the Krishnapatnam project is yet to take off.

The government has identified 83 acres of land to construct the captive port for the Cheyyur UMPP.

The project is being planned to occupy a total of 1,111 acres across four villages in Kancheepuram district. The project site is 96 km south of Chennai towards the sea shore.

According to PFC, the studies, surveys and investigation required for the port have been done. These include the site feasibility study, Comprehensive Environmental Assessment (EIA), socio-economic survey, geo-technical investigation, area drainage study, topographical survey and the coastal morphology study on shoreline changes.