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Wednesday, November 16, 2011

Tamil nadu to rely on imported coal for new thermal projects

Wednesday, 16 Nov 2011

The Tamil Nadu Generation and Distribution Corporation is mulling over the option of using imported coal alone for five of its upcoming thermal projects.

An official said that the power utility has been compelled to study the option as Coal India, the major supplier to the TANGEDCO, has pleaded helplessness in providing coal linkage to new projects in view of acute shortage. Environmental clearance, the most important approval for a power project, will be given by the Union government normally after coal linkage is firmed up.

The five projects are awaiting other clearances at various levels. They are: Ennore Thermal Power Station Annexe (600 megawatt)
North Chennai TPS Stage 4 (2 units of 800 MW each)
NCTPS Stage 3 (800 MW)
Tuticorin TPS (800 MW) and
Uppur thermal power project (2units of 800 MW each)

The combined installed capacity of the five projects is 5,400 MW.

In fact, one of the five projects Ennore Thermal Power Station Annexe (600 megawatt) has received environmental clearance after Mahanadi Coalfields, a subsidiary of Coal India, agreed to supply coal. But, now, the coal company is dragging its feet, forcing the TANGEDCO to seek imported coal.

As an initial step, the TANGEDCO floated bids for the appointment of a consultant to study the various factors, such as the exact requirement, suitable coal grade, countries that will supply and the formulation of short-term and long term contracts.

Periodicity of coal to be imported and the cost are among the other issues to be studied.

The last date for submission of bids is November 18. By the end of this month, the contract is likely to be awarded.

(sourced from Hindu.com)

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