Concern over delay in Ennore project

Power Secretary RV Shahi has expressed serious concern over delay in the progress of NTPC's joint venture with Tamil Nadu Electricity Board (TNEB) for a 1000 MW plant at Ennore near Chennai.

The secretary made the observation at the NTPC performance review for the previous quarter.

"There have been some problems regarding coal issues. The secretary also expressed his concern on the progress of NTPC's Barh power project," a government official told Business Standard.

NTPC had signed an MoU with the TNEB on July 12, 2002, to set up a 1000 MW coal-based power station at Ennore in Tamil Nadu, utilising the existing infrastructure facility at Ennore. NTPC Tamil Nadu Energy Company Limited (NTECL) is a JV company between NTPC and TNEB that was formed in May 2003 for the purpose.

One of the advantages of having the plant at Ennore is the existence of a port close to the location for import of coal.

This is expected to bring cost savings to the project. The project involves an equity contribution of 50 per cent by NTPC, with the rest being contributed by TNEB. "NTPC is likely to get coal from the Talcher area," the official added.

The Ennore power plant site is located in the midst of an industrial area north of Chennai. Commercial vehicle major Ashok Leyland and tyre major MRF have factories close by. Amongst other major industries, a 9.5 million tonne per annum plant run by Chennai Petroleum Corporation and fertiliser plants belonging to SPIC and Madras Fertilisers are also in the vicinity.

"Site specific studies for the project have been completed and the feasibility report is under advanced stage of finalisation," the official added.