Coal linkage recommended for development of Ennore Thermal Power Station expansion project

The Standing Linkage Committee (Long-Term) for Power Sector, under the Union Ministry of Coal, has recommended earmarking of coal linkage under the revised policy, for developing the stranded 660-MW Ennore Thermal Power Station (ETPS) expansion project in Chennai. 

Tamil Nadu Power Generation Corporation Ltd (TNPGCL) had requested to earmark long-term coal linkage as per the revised Shakti Policy 2025 for coal allocation, under the provision which allows conduct of tariff-based competitive bidding to develop and procure 660 MW from the stranded ETPS expansion project, as per the minutes of the discussion of the Standing Linkage Committee.

TNPGCL further said they have surrendered the coal linkage allocated earlier to the project under the erstwhile Shakti Policy and the surrender has been accepted by Coal India. It further stated the 660-MW ETPS expansion plant is a non-pithead (thermal power plants are situated at a distance from coal mines), is a brownfield expansion project and is 100% domestic coal-based power plant, as per the minutes of the meeting.

The Central Electricity Authority (CEA) noted that the coal linkage for the project has been recommended based on the Resource Adequacy Plan accepted by Tamil Nadu.

As per the Resource Adequacy Plan prepared by CEA, Tamil Nadu has planned contracts for 6,486 MW from thermal capacity till fiscal 2029-30. Further, the State is required to tie-up additional 7,000 MW from thermal capacity till fiscal 2034- 35. To meet the required 7,000 MW of additional coal-based capacity, TNPGCL has now decided to develop the stranded ETPS expansion project under public-private partnership (PPP) mode, according to the Union Ministry of Power. 

The Union Power Ministry also recommended earmarking of coal linkage for the project as per the revised policy.

NITI Aayog, Ministry of Railways and NTPC have also recommended earmarking of coal linkage to the project, subject to fulfilment of the conditions of the revised Shakti Policy, as per the minutes of the meeting.

Coal India Ltd. shall identify and intimate the coal source to Tamil Nadu indicating the quantity, likely mode of dispatch and representative quality of coal. Successful bidder shall be identified by TNPGCL within 1 year from the date of earmarking of coal linkage, failing which the earmarked coal linkage may lapse, the Standing Linkage Committee said.

As per the State Energy Department’s policy note for 2025-26, ETPS Expansion Thermal Power Project has faced significant challenges over the years.

Two engineering, procurement, construction (EPC) contractors (Lanco Infra Tech Ltd. and BGR Energy Systems Ltd.) were terminated due to slow progress and poor performance, it said.

A purchase order was issued to SBI CAPS on September 2, 2024 for engaging transaction advisory services for the preparation of feasibility report for the execution of 1×660 MW ETPS Expansion project from “as is where is basis condition” through PPP mode. Pre-draft Detailed Feasibility Report (DFR) has been received from SBI CAPS and is currently under review, the policy note added.