Power Regulator Blocks Spic'S Tuticorin Project

The standing project appraisal committee of the Central Electricity Authority has declined to award techno-economic clearance to Spic's 500-mw Tuticorin thermal power project, citing a high project cost and lack of fuel linkages.

Sources said the detailed project report submitted to CEA did not furnish some basic inputs required for clearance. Apart from the project cost and fuel linkages, objections were also raised in respect of the cooling water system, jetty and the plant's rated capacity, which was said to be ambiguous.

The project proposes to use imported coal for power generation, but Spic had not specified the source of the coal. The CEA committee pointed out that the company had shortlisted only the suppliers which raised questions regarding all relevant parameters of the coal to be used.

 

The project cost for the 500-mw plant was estimated at Rs 2,479.10 crore, which works out to Rs 4.9 crore per mw. The committee said it was too high. The notification on plant capacity sent to CEA was for 500 mw, but Raytheon