Standing Linkage Committee recommends coal linkage for 660 MW Ennore plant

The Standing Linkage Committee (Long-Term) for the power sector has recommended earmarking coal linkage for the 660 MW Ennore Thermal Power Station (ETPS) expansion project in Chennai, under the revised Shakti Policy 2025. The recommendation follows a request by Tamil Nadu Power Generation Corporation Ltd (TNPGCL) to revive the stranded project through a tariff-based competitive bidding process.

The ETPS expansion is a brownfield, non-pithead plant based entirely on domestic coal. TNPGCL had earlier surrendered its previous coal linkage under the earlier Shakti policy, which Coal India accepted. The current linkage request falls under provisions that allow the state discom to procure power competitively from stranded assets, as reported by The Hindu.

The Central Electricity Authority (CEA) backed the linkage, citing Tamil Nadu’s Resource Adequacy Plan, which outlines a requirement for 6,486 MW of thermal capacity contracts by FY 2029-30 and an additional 7,000 MW by FY 2034-35. To meet this need, TNPGCL now proposes to develop the 660 MW project through a public-private partnership model.

Multiple central bodies, including the Ministry of Power, NITI Aayog, the Ministry of Railways, and NTPC, have supported the linkage recommendation, conditional on the revised policy norms. Coal India is tasked with identifying the coal source and informing TNPGCL of supply details. If a successful bidder is not selected within one year, the linkage may lapse.

The project has faced prolonged delays, with two EPC contractors, Lanco Infratech and BGR Energy Systems, previously removed due to performance issues. TNPGCL appointed SBI CAPS in September 2024 to prepare a feasibility report for redeveloping the project on an “as-is-where-is” basis. A pre-draft Detailed Feasibility Report is currently under review.