Trade Resources Industry Views Tangedco Is Likely to Finalize The Main Plant Package for Udangudi Thermal Power Project

Tangedco Is Likely to Finalize The Main Plant Package for Udangudi Thermal Power Project

Tamil Nadu Generation & Distribution Corporation Ltd (Tangedco) is likely to finalize the main plant package for the Udangudi thermal power project by December-end. Speaking to Electrical Monitor, a senior project official of Tangedco explained that technical evaluation of the four contenders was underway. While Bharat Heavy Electricals Ltd is the only Indian bidder, the remaining three are Chinese firms, the official said.

The coal-fired power project with two supercritical units of 660-mw each is coming up at Udangudi near Thiruchendur, with a total estimated outlay of Rs.8,745 crore. The project is designed to run on imported coal, the official noted. The incumbent contractor will construct the entire power plant on EPC basis, except for the coal jetty and conveyor. While consultants for the coal jetty and conveyor package have been appointed, tendering for the contractor is in progress. Environmental clearance for the Udangudi power plant has been secured, the project official observed.

In the second phase of the Udangudi project, one more supercritical unit of 800-mw, or perhaps two such, would be installed, according to the Tangedco spokesperson. The utility was in the process of seeking environmental clearance for the second phase as well, he noted.

Back in Chinese company: When proposed in 2007, the 2x660-mw Udangudi project was supposed to be developed by a joint venture between Tamil Nadu Electricity Board (as it existed before bifurcation) and Bharat Heavy Electricals Ltd. The PSU engineering company was to hold 26 per cent equity stake with an understanding that it would supplying the main plant package to the project. For BHEL, the Udangudi project was a means to secure its position in the supercritical power business that was increasingly dominated by Chinese suppliers. TNEB was bifurcated into Tagendco and Tantransco effective October 2011.

BHEL’s association with TNEB as an equity partner in the Udangudi project did not last long. Citing poor progress by BHEL (as developer) in expediting pre-project work like land acquisition and clearances as the main reason, TNEB called off the partnership in 2012 and decided to implement the project on its own. It is interesting to note that after six years, BHEL has turned a full circle with the Udangudi project and is now amidst the very same competition that it was trying to obviate at the onset.

BHEL, with the same objective of securing main plant orders, had entered into a similar agreement with Karnataka Power Corporation Ltd to develop the 2x800-mw Yeramarus power plant as well as the 1x800-mw Edlapur project. For both these supercritical power projects, BHEL has been mandated to supply the boiler and turbine-generator package.                    

Source: http://www.electricalmonitor.com/ArticleDetails.aspx?aid=1818&sid=1
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