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Stalemate over TN power projects as Centre dithers

Two major power projects in Tamil Nadu including the Rs 60 billion liquified natural gas terminal at Ennore have been virtually grounded as the surface transport ministry has put on hold clearance for their sites in port areas.

The Union power ministry has proposed to move the Union Cabinet shortly to end the six-month-long stalemate over the project site for the 500 mega-watt thermal power project at Tuticorin by the petrochemical giant, SPIC, according to highly placed power ministry sources.

The multi-crore project being put up in collaboration with a Singapore firm has been cleared in all respects nearly six months back and is awaiting financial closure. Further progress in the project has been held up since the transport ministry declined to give clearance for the project site in Tuticorin Port area.

Sources said the site has been cleared by the Tuticorin Port Trust through a resolution a few years ago. The issue was reopened by the former surface transport minister on a valid ground that allotment of the said land would come in the way of future port expansion.

Transport ministry sources said even the Tamil Nadu Electricity Board which runs a mega power project at Tuticorin has been allotted land a few km away from the port area and coal unloaded at the port is ferried to the plant site through conveyor belts. But SPIC insists on allotment of the land adjoining the port. The precious land, if bartered away to the SPIC project, would come in the way of Tuticorin Port expansion especially when the government is thinking in terms of giving clearance to the Sethusamudram project.

They also point out that the SPIC power project has been offered an alternate site south of the port. But the petrochemical giant is unwilling to invest funds in developing the land.

As the battle between SPIC and surface transport ministry is on for few months, power ministry alarmed over the inordinate delay, plans to approach the Union Cabinet to resolve the dispute.

Another major project pending with the surface transport ministry is the 3.5 million tonne LNG terminal proposed at the satellite port of Ennore by the Tamil Nadu Industrial Investment Corporation or TIDCO.

TIDCO has already shortlisted LNG suppliers for the project and is awaiting clearance from the transport ministry for the site at Ennore Port for the last three months. Tamil Nadu Chief Minister M Karunandidhi had taken up the issue with Prime Minister Atal Bihari Vajpayee when he met him last week.

Work on the other other two LNG terminals being put up by the state-owned Petronet LNG at Dahej (six million tonnes) and Cochin (2.5 million tonnes) are however progressing smoothly.

UNI

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