CMs powerful push to Udangudi plant on Birthday

CHENNAI: As part of efforts to end power shortage, Chief Minister J Jayalalithaa on Friday announced that the State would bear the entire cost of Rs 8,000 crore for setting up the Udangudi Super Critical Thermal Power Project in Thoothukudi district.In an official release here, Jayalalithaa said the State would provide as share capital the entire cost of Rs 8,000 crore to the Tamil Nadu Generation and Distribution Corporation to implement the project that has remained a non-starter for many years.A Memorandum of Understanding for the 1,600 MW (2x800 MW) project was signed by the erstwhile TNEB and BHEL (Bharat Heavy Electricals Limited) as early as October 2007. A joint venture enterprise, Udangudi Power Corporation Limited was formed on December 26, 2008.According to the funding plan, it was decided that both TNEB and BHEL would contribute 26 per cent each of the total share capital of Rs 8,000 crore. It was also decided to source the remaining 48 per cent either from a funding agency or a private firm that would come forward to execute the project.Hitting out at arch-rival DMK, she said: “The private entity that was supposed to execute the project was not identified till May 2011, till the end of DMK regime.” But for the allocation of Rs 32.5 crore by BHEL and TNEB, nothing was done to implement the project. The percentage of credit and share capital was not decided, and clearance not obtained from the Union Environment Ministry.Pointing out the factors that held up the mega project, she said: “Therefore, I have decided to implement it as a State government project. The State will fund the cost.”As the Union Coal Ministry had not issued orders for allocation of coal for the project, it would now be imported, following Union Environment Ministry clearances, she said. The project will now earn Mega Power Status, resulting in many tax sops, thus lowering input costs.