BHEL to study TN offer for quitting Udangudi power project

IANS reported that power equipment major Bharat Heavy Electricals Ltd will study the Tamil Nadu government's offer to it on the cancellation of the joint venture 1,600 MW Udangudi power project.

A senior official told that "We have not got any official communication from the Tamil Nadu government/Tamil Nadu Electricity Board on the decision to scrap the power project. We will study the pros and cons of the offer that we expect the state government to make and decide on exiting the joint venture.”

Tamil Nadu chief minister Ms J Jayalalithaa recently announced the cancellation of the joint venture citing the lack of progress in the INR 8,000 crore Udangudi power project for which MoU was signed between TNEB and BHEL to promote the power project in 2007. In 2008, TNEB and BHEL floated a joint venture company Udangudi Power Corporation Ltd, each taking 26%. The balance 48% stake was to be contributed by a private player participating in the project or by a financial institution funding the project. The project is yet to get coal linkage and the environmental clearance. The public hearing after preparing the environmental impact assessment was held in 2009. The two joint venture partners have invested INR 32.5 crore each and completed the site levelling activities at the project site.

TN CM has also decided that the state government would fully fund the project, which would be executed by TNEB as a state project with imported coal.

(Sourced from IANS)

ref:
http://www.steelguru.com/indian_news/BHEL_to_study_TN_offer_for_quitting_Udangudi_power_project/252221.html