Ennore's ₹4,500 Crore Comeback: A New Era for TN Power

The Tamil Nadu Power Generation Corporation Ltd. (TNPGCL) is actively exploring multiple execution models—including a public-private partnership (PPP)—to revive the long-stalled 660 MW Ennore Thermal Power Station (ETPS) expansion project.

Estimated at approximately ₹4,500 crore, the project has faced repeated delays following the termination of contracts with Lanco Infratech and BGR Energy Systems. To restart the initiative, TNPGCL issued a purchase order to SBI CAPS on 2 September 2024 for transaction advisory services. SBI CAPS has since submitted a pre-draft detailed feasibility report (DFR), which is currently under review.

Revival efforts have gained momentum following the Union government’s revised Shakti Policy 2025, which permits coal linkages for power projects selected through tariff-based competitive bidding. The updated guidelines enable states to allocate coal to projects that are in the planning or construction stage, or selected via competitive bidding.

TNPGCL has approached the Standing Linkage Committee to secure a long-term coal linkage for the Ennore project under the revised policy framework. A senior official confirmed that discussions are ongoing with the Tamil Nadu Infrastructure Development Board, and all development models—including PPP—remain under active consideration.

News by Rahul Yelligetti.