Meenakshi Energy Thermal Power Project

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Meenakshi Energy Thermal Power Project is an operating power station of at least 300-megawatts (MW) in Thamminapatnam, Chillakur, Nellore, Andhra Pradesh, India with multiple units, some of which are not currently operating. It is also known as Thamminapatnam, Thamminapatnam TPP, St-II (Units 3 and 4).

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Meenakshi Energy Thermal Power Project	Thamminapatnam, Chillakur, Nellore, Andhra Pradesh, India	14.211195, 80.090062 (exact)

The map below shows the exact location of the power station.

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Unit-level coordinates (WGS 84):

• Stage I Unit 1, Stage I Unit 2, Unit 3, Unit 4: 14.211195, 80.090062

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year
Stage I Unit 1	operating	coal: unknown	150	subcritical	2012
Stage I Unit 2	operating	coal: unknown	150	subcritical	2013
Unit 3	construction	coal: unknown	350	subcritical	2024 (planned)
Unit 4	construction	coal: unknown	350	subcritical	2024 (planned)

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Stage I Unit 1	Meenakshi Energy Ltd [100%]	Vedanta Ltd [100.0%]
Stage I Unit 2	Meenakshi Energy Ltd [100%]	Vedanta Ltd [100.0%]
Unit 3	Meenakshi Energy Ltd [100%]	Vedanta Ltd [100.0%]
Unit 4	Meenakshi Energy Ltd [100%]	Vedanta Ltd [100.0%]

Project-level coal details

• Coal source(s): 70% domestic, 30% imported

Background

Meenakshi Energy Thermal Power Project was originally a 300 MW coal project built by Meenakshi Energy in Andhra Pradesh. According to the Central Electricity Authority (September 2012), one 150 MW unit was commissioned in September 2012 and the second 150 unit was commissioned in April 2013. According to the company web site, "The first phase of the Project (300 MW) has been configured in a unique 'part tolling-part merchant' configuration with PTC India Limited."

Meenakshi Energy mentioned additional expansion plans for a total of 900 MW (2 x 300 MW addition) or 1,000 MW (2 x 350 MW addition).

In 2013, French energy company GDF Suez (later renamed Engie) spent $400 million to acquire a 74 per cent stake in Meenakshi Energy, including the Meenakshi power station. Indian developer Meenakshi Group owned the remaining 26 percent stake. The Hindu stated a 700 MW addition to the plant was under construction and expected to be completed by 2015 to 2016. Engie gradually increased its share to 89%.

In August 2015, Engie said it was planning to sell its controlling stake in the Meenakshi plant. The French government, which owned a third of Engie, wanted to reorient state-backed companies toward renewables, after a sustained public opposition campaign to French financing of fossil fuel projects. The planned 700 MW was reported as under construction, and was planned for operation in 2017-2018.

In February 2016, Engie sold its majority stake in the plant to India Power Corp, a Kanoria family trust entity with interests in wind and thermal power.

In May 2018, the India Power Ministry said progress on the project was slow: "due to financial problem, work at site remained closed for a long time."

Units 3 & 4

According to the India Ministry of Power, unit 3 achieved a "full load" in April 2018 after being synchronized in February 2018. In November 2019 documents, Unit 4 was still listed as expected in October 2019. The following "reasons for slippage" were given for both units: "Slow progress of Civil works. Due to financial problem, work at site remained closed for a long time."

National Company Law Tribunal (NCLT) insolvency process

In July 2018, a consortium of lenders led by Rural Electrification Corporation (REC) and SBI put on sale the potential 1,000-megawatt (mw) plant operated by Meenakshi Energy (MEPL). As of May 2016, Meenakshi Energy’s outstanding debt was over Rs 4,000 crore. Although Units 1 & 2 were reportedly declared commercially operational, the 700 MW Phase-2 of the project was reportedly still under construction. In May 2016, India Ratings downgraded the rating on MEPL’s senior bank loans for Phase-1 and Phase-2 and additional term loans for the latter to‘IND BBB’ from ‘IND A-’ and placed it on Rating Watch Evolving (RWE). The rating agency had said that the downgrade reflected significant slippages in Phase-II of the project schedule, as reflected by the physical progress of 68% in May 2016, while the project’s scheduled commercial operation date was August 31, 2016. “The lenders’ engineer has revised the expected completion date of the project to March 2018,” India Ratings said in its rationale for the downgrade.

In September 2020, NCLAT upheld an NCLT order to initiate insolvency against Meenakshi Energy, dismissing the plea filed by its director and its shareholder India Power Corporation Ltd observing that the company had committed default.

In 2021 documents, the Central Electricity Authority still listed the following for the projects Phase II: "Admitted to NCLT on 07.11.2019; Resolution Plans have been received which are under consideration of Committee of Creditors (“CoC”) and the outcome would be subject to the final decision of NCLT."

In addition, Expression of Interest documents confirmed that Phase-I which comprised of units 1 & 2 were fully operational, but that Phase-II was not finalized ("Unit III has been tested and is only pending COD. Unit IV is pending testing and COD."). The document pitched the potential for a Phase-III project of up to 800 MW. It also noted the plant had a 200 MW long term PPA with Bangladesh to supply power at levelized tariff at US$ 6.66 Cents.

Related documents were posted on the company's liquidation website.

In May 2022, to "tackle the power crisis," the State Bank of India agreed to provide working capital to Meenakshi Energy with NTPC being entrusted to operate the plant. The resolution professional was given a target date of May 31 to start operations at the two 150 MW units.

The project had incurred a cost overrun, followed by a default in servicing the loan. Lenders, especially the two state-run, dedicated power sector financiers, Power Finance Corp (PFC) and REC, had been seriously considering bidding for the stressed power asset to prevent large "haircuts" on their loans during resolutions. They had even proposed to float a consortium of lenders and state-run power sector entities (CPSEs) with technical know-how in the sector, to acquire and operate such stressed assets, sources said.

In January 2023, acquisition by Vedanta for Rs 1,440 crore was expected to be completed by FY 2024, with approval by the NCLT pending. According to a company filing, "Vedanta currently envisage[d] to operate 1000 MW of Meenakshi Energy Limited as IPP to cater to the needs of the market by entering into short or medium-term PPA and by supplying power to merchants."

In May 2023, the Broad Status reported that the NCLT process to approve the liquidation was still underway. The June 2023 Broad Status maintained that the NCLT approval process was still underway, and that the project was likely to be commissioned in 2024-2025. In the August 2023 Broad Status, it was reported that the NCLT had approved the plant's transfer to Vedanta Ltd. The project was still expected to be commissioned during 2024-2025.

The December 2023 Broad Status reported that the power station had been bought by Vedanta via the NCLT. At the time of reporting, Unit 3 was expected to be commissioned in September 2024, and Unit 4 in October 2024.

Continued development under Vedanta ownership

Reporting in April 2024 announced that Vedanta had secured an 11-year term loan of Rs 3,900 crore from Power Finance Corporation Ltd (PFC) for the purpose of completing construction of the new units at the Meenakshi Energy and Athena Power coal plants.

According to the April and May 2024 Broad Status reports, Units 3 and 4 (also referred to as Units 1 and 2 of Stage II) were still expected to be commissioned in September and October 2024 respectively.

Financing

10-07-2010 - Loan agreement signed with State Bank of India and other banks, SBI as lead lender.

Units 3-4: Reporting in April 2024 announced that Vedanta had secured an 11-year term loan of Rs 3,900 crore from Power Finance Corporation Ltd (PFC) for the purpose of completing construction of the new units at the Meenakshi Energy and Athena Power coal plants. This appeared to be a corporate loan to Vedanta rather than project financing for the plant.

Articles and Resources

Additional data

To access additional data, including an interactive map of coal-fired power stations, a downloadable dataset, and summary data, please visit the Global Coal Plant Tracker on the Global Energy Monitor website.