Coal Linkage Recommended for Reviving Ennore Thermal Power Station Expansion

07 Aug 2025 CW Team

The proposal, submitted by Tamil Nadu Power Generation Corporation (TNPGCL), aims to develop the long-stalled ETPS expansion project through a tariff-based competitive bidding process under the Public-Private Partnership (PPP) model. The project is a 100 per cent domestic coal-based, non-pithead, brownfield plant, located away from coal mining areas.

As per the meeting minutes of the Standing Linkage Committee, TNPGCL had previously surrendered its earlier coal allocation under the old Shakti Policy, which was accepted by Coal India. Now, under the revised policy, fresh coal linkage has been recommended to facilitate the project’s development.

The Central Electricity Authority (CEA) has supported the move, aligning it with Tamil Nadu’s Resource Adequacy Plan, which anticipates a need for an additional 7,000 MW of thermal capacity by FY 2034–35. The state already has contracts in place for 6,486 MW till FY 2029–30.

The Ministry of Power, along with NITI Aayog, the Ministry of Railways, and NTPC, have also supported the coal linkage recommendation, subject to compliance with the revised policy norms. Coal India will now identify the coal source and share details such as quantity, quality, and mode of dispatch with TNPGCL.

The Standing Linkage Committee has stipulated that the successful bidder for the project must be finalised within one year from the date of coal linkage allocation, failing which the allotment may lapse.

According to the Tamil Nadu State Energy Department’s 2025–26 policy note, the ETPS expansion project has faced multiple delays over the years, with previous EPC contractors Lanco Infratech and BGR Energy Systems being terminated due to poor performance.

In a step forward, a purchase order was issued to SBI CAPS in September 2024 to provide transaction advisory services. A pre-draft Detailed Feasibility Report (DFR) for the 660 MW project is currently under review.

News source: The Hindu

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