Tamil Nadu weighs PPP route to revive Rs 54.2 billion Ennore expansion

Tamil Nadu Power Generation Corporation (TNPGCL) is considering a range of development models, including public-private partnerships (PPP), to restart the delayed 660 MW expansion of the Ennore Thermal Power Station. 

The Rs 54.21 billion supercritical project has faced repeated delays following the termination of earlier contracts with Lanco Infratech and BGR Energy Systems.

To relaunch the project, TNPGCL issued a purchase order to SBI Capital Markets on 2 September 2024 for transaction advisory services. SBI CAPS has submitted a pre-draft detailed feasibility report (DFR), which is currently under review.

A key development is the Centre’s revised Shakti Policy 2025. It permits coal linkages for power projects selected through tariff-based competitive bidding. This allows states to allocate coal to projects under construction or in the planning stage. TNPGCL has formally requested long-term coal linkage for the Ennore expansion under this policy and is engaging with the Standing Linkage Committee.

A TNPGCL official confirmed ongoing coordination with the Tamil Nadu Infrastructure Development Board. All implementation models, including PPP, remain under consideration to ensure project viability. The expansion will add a 660 MW unit within the existing Ennore plant complex.