Decks have been cleared for the fast-tracking of Tamil Nadu Electricity Boards (TNEB) 2 X 800 mw coal-fired power project to be set up in the Ennore special economic zone (Ennore SEZ) with state-run power utility getting the much-needed clearance from the ministry of environment and forests to go ahead with the project.
The power-starved state is working overtime to make a net addition to its installed capacity by fast tracking projects to meet the demand from the industrial and hi-tension consumers. The government had time and again come under fire from various industrial bodies and trade organisations for slapping long-hours of power outages on industrial and high-tension customers.
Sources told FE that the Environment Impact Assessment (EIA) committee under the ministry of environment and forests, at its last meeting, had taken up the case of Ennore SEZ Power project and directed the department concerned to issue necessary clearances for the project. TNEB would soon put the 1,600 mw, coal-fired project to be set up in Ennore SEZ, in motion by going to the market for sourcing technology and equipment. As of now, the project is expected to be financed by a combination of debt and equity with majority stake being held by TNEB. The SEB has not yet finalised the financial structuring of the project.
Ennore SEZ is being developed by the Tamil Nadu Industrial Development Corporation (Tidco), the nodal agency for implementing the industrial projects in the state. Being a project based out of SEZ, TNEB is expecting various concession offered under the SEZ scheme for the project. Being a SEZ project, the Board expects various concession under the SEZ scheme for the venture including rebates on taxes and other related advantages, a source told FE.