Thoothukudi to Become South India's Power Generation Hub, with 8,000 Megawatts of Capacity to be Commissioned by 2015

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Researched by Industrial Info Resources (Sugar Land, Texas)--The coastal district of Thoothukudi in the southern Indian state of Tamil Nadu is set to become the regional power generation hub, with nearly 8,000 megawatts (MW) of power projects in various stages of development in the region. Entailing a combined investment of $9.3 billion, these projects are scheduled for completion by 2015 and are expected to transform power-deficient Tamil Nadu into a power-surplus state.

According to data from the Tamil Nadu Electricity Board (TNEB) (Chennai, Tamil Nadu), the state has a total installed power generation capacity of 10,214 MW. Annual per capita power consumption in the state stands at more than 1,000 kilowatt-hours (kWh), compared to the national average of 704.2 kWh that was reported in 2007-08. Demand for power in the state is expected to grow at an annual rate of 8% to 14,000 MW by 2011-12. C P Singh, the chairman of TNEB, expressed confidence that the demand-supply gap would be bridged by 2011.

TNEB operates a 1,050-MW thermal power plant at Thoothukudi. The power station comprises five units of 210 MW each. The public sector unit (PSU) has set up a joint venture with Neyveli Lignite Corporation Limited (BSE:513683) (NLC) (Chennai), named NLC Tamil Nadu Power Limited (Chennai), to develop a 1,000-MW thermal power plant at Thoothukudi. The project will comprise two units of 500 MW each, scheduled for commissioning in March 2012 and August 2012, respectively. Bharat Heavy Electricals Limited (BSE:500103) (BHEL) (Mumbai) has been appointed as the main plant contractor. The total project cost is estimated at $1.08 billion.

In a venture with BHEL named Udangudi Power Corporation Limited (Chennai), TNEB is developing a 1,600-MW supercritical thermal power plant at Udangudi. The project will comprise two units of 800 MW each, scheduled for commissioning in March 2013 and September 2013, respectively. The total cost of the project is estimated at $2 billion.

In the private sector, Coastal Energen Private Limited (Chennai), the flagship power-generating arm of Coal and Oil Group (C&O) (Dubai, United Arab Emirates), is setting up its maiden power project at Melmaruvathur. The 1,200-MW coal-fired thermal power plant will consist of two units of 600 MW each, and will have provisions for expansion to 3,600 to 4,000 MW of power generating capacity at a later stage. Financial closure for the $864 million project was attained in July 2009, and the project is scheduled for commissioning in 2011-12. The firm plans to invest $300 million to acquire coal mines and purchase new ships for coal imports.

Ind-Bharath Power Gen Limited (Hyderabad, Andhra Pradesh) is setting up a 450-MW thermal power plant at Thoothukudi. The $397 million project, comprising three units of 150 MW each, was originally planned to be developed at Hanakon in Karnataka, but was relocated to Thoothukudi early this month following local opposition on environmental grounds. Ind-Bharath is also setting up a 1,320-MW thermal power plant, with two units of 660 MW each, at Manapad. The project is scheduled for commissioning by 2015. Another 450-MW power project that is being developed by the firm at Swaminathan is scheduled for completion within 20 months.

A 210-MW power plant at Mela Arasadi village is scheduled to begin operations in May this year.

In April 2009, the Tuticorin Port Trust received Expressions of Interest from C&O and Madras Cement Limited (BSE:500260) (Chennai) for developing a 250-MW coal-based power plant at Hare Island, with an investment of $265 million. The detailed project report is being drawn up, following which the Port Trust will seek project approvals from the ministries concerned. The Tuticorin Port Trust is also developing a 6-MW captive windfarm, with an investment of $9.3 million.

Power from the upcoming projects in the district will be evacuated through transmission lines to be developed by state-owned Power Grid Corporation of India Limited (BSE:532898) (PGCIL) (Gurgaon, Haryana) under the Southern Region II scheme. PGCIL will invest $507 million to add 2,000 circuit kilometers of transmission lines across Tamil Nadu, Karnataka and Kerala by March 31, 2012. The firm also will invest $132 million to add new substations in these states.

The Tuticorin Port is being expanded at an investment of $221 million to facilitate increased coal imports for the new power plants. The port currently handles about 7.5 million tons per year of coal and is being expanded to handle up to 12.5 million to 13 million tons per year of coal. NLC is also developing a coal handling facility at the port with an investment of $44 million to $55 million.

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