Work on captive port for 1320-Mw Udangudi power project soon

Delay in implementing the Udangudi thermal power project had led to a higher project cost of Rs 15,000 crore, up from Rs 10,121 crore

The Tamil Nadu government today said bids for the captive port for lifting coal for the proposed Udangudi thermal power project was opened on March 19 and the work on the project would commence soon.

Stating this in a statement today, state electricity, prohibition and excise minister Natham R Viswanathan also said fresh tenders for the 2X660-Mw Udangudi thermal project would be issued soon.

The government had cancelled the previous tenders for the power project based on a report by the consultant, which found some anomalies in the price bids submitted by two participants.

The state power utility decided to call for fresh tenders to avoid legal hurdles, he added.

The Tamil Nadu Electricity Board (TNEB) had signed a memorandum of understanding (MoU) for the project and the foundation was laid in 2009. While cancelling the process, it announced it would be implemented by Tangedco with a Rs 8,000 crore allocation from the state government. However, political parties in the state, led by the DMK, have been demanding a probe into the decision to cancel the tenders. DMK chief Karunanidhi alleged the project that was slated for the inauguration in 2013 could have been completed in 2017.

“It could have generated 1,320-Mw. With the previous tenders cancelled, it will take enormous time to begin the fresh tendering process and start producing electricity,” he said.

The delay had led to a higher project cost of Rs 15,000 crore, up from Rs 10,121 crore.