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Spic Electric to restart Rs 2,300-cr power project

Source : BUSINESS_STANDARD
Last Updated: Sun, Oct 07, 2012 20:01 hrs

Spic Electric Power Corporation (SEPC), a subsidiary of Tamilnadu Petroproducts Ltd (TPL), has decided to revive its 523-Mw thermal power plant at Tuticorin, shelved 11 years earlier.

The Rs 2,300-crore project was conceived in 1995 but put on hold in 2001 due to a land dispute. In its annual report, SEPC said the V O Chidambaranar Port Trust (formerly Tuticorin Port Trust) has agreed to give alternative land to start work on the project. SEPC had already got environmental clearance, the company said in its annual report. It had,it said, held a fruitful discussion with the Port Trust officials and sought permission for various facilities.

According to TPL, promoted by Southern Petrochemical Industries Corporation (Spic) and the Tamil Nadu government, SEPC and an investor company — Trinity Infraventure Ltd — had signed an agreement on May 28, 2009, for implementation of the power project. The investor company has agreed to bring in 74 per cent of the equity needed. TPL said the detailed project report with the revised project cost, Rs 2,300 crore in 2001, was under consideration by SEPC.

The company said that in response to a petition filed by SEPC before the Tamil Nadu Electricity Regulatory Commission (TNERC) in April 2010, an order was delivered in 2011 saying there was no impediment in implementing the project and further directed certain amendments to the Power Purchase Agreement already implemented by SEPC and Tamilnadu Generation and Distribution Corporation Ltd.

Subsequently, SEPC and Tangedco signed the amendments to the PPA in January 2012 as ordered by TNERC.

“Consent to establish the project, to be given by Tamil Nadu Pollution Control Board, is in advanced stage of issuance. SEPC would be continuing with its efforts so that the financial closure could be achieved early,” said in the report.



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