Udangudi Super Critical Thermal Power Project

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Udangudi Super Critical Thermal Power Project is a power station in Udangudi, Thiruchendur, Thoothukudi, Tamil Nadu, India with multiple units of varying statuses, none of which are currently operating.

Location

Table 1: Project-level location details

Plant name	Location	Coordinates (WGS 84)
Udangudi Super Critical Thermal Power Project	Udangudi, Thiruchendur, Thoothukudi, Tamil Nadu, India	8.434722, 78.061111 (exact)

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

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Unit-level coordinates (WGS 84):

• Unit 1, Unit 2, Unit 3, Unit 4, Unit 5, Unit 6: 8.434722, 78.061111

Project Details

Table 2: Unit-level details

Unit name	Status	Fuel(s)	Capacity (MW)	Technology	Start year
Unit 1	construction	coal: unknown	660	supercritical	2024 (planned)
Unit 2	construction	coal: unknown	660	supercritical	2025 (planned)
Unit 3	pre-permit	coal: unknown	660	supercritical	–
Unit 4	pre-permit	coal: unknown	660	supercritical	–
Unit 5	pre-permit	coal: unknown	660	supercritical	–
Unit 6	pre-permit	coal: unknown	660	supercritical	–

Table 3: Unit-level ownership and operator details

Unit name	Owner	Parent
Unit 1	Tamil Nadu Generation and Distribution Co Ltd [100%]	TNEB Ltd
Unit 2	Tamil Nadu Generation and Distribution Co Ltd [100%]	TNEB Ltd
Unit 3	Tamil Nadu Generation and Distribution Co Ltd [100%]	TNEB Ltd
Unit 4	Tamil Nadu Generation and Distribution Co Ltd [100%]	TNEB Ltd
Unit 5	Tamil Nadu Generation and Distribution Co Ltd [100%]	TNEB Ltd
Unit 6	Tamil Nadu Generation and Distribution Co Ltd [100%]	TNEB Ltd

Background

The project was proposed by Tamil Nadu Generation and Distribution Corporation (TANGEDCO). Phase I would be 2 x 800 MW, and phases II and III would be 4 x 660 MW.

It was proposed that a project-specific jetty be built at Udangudi with coal transported to the power station via a conveyor system.

In 2012, Udangudi Power Corporation stated on its website that "the required clearances from the concerned agencies are being obtained and the final clearance from MoEF will be obtained shortly. The proposed date of commencement of the project activities at site is Apr 2012 and the proposed date of commissioning of the plant will be 2016 - 2017."

In 2012, chief minister J. Jayalalithaa cancelled the deal with BHEL. The government said Tamil Nadu Electricity Board would implement the project on its own, and fresh tenders were floated in 2013.

In March 2015, the Tamil Nadu Electricity Board scrapped the bids for the power station, now 1320 MW, saying the bids were defective. The board said it would float fresh tenders soon, but it may take more than a year to finalize a new contractor to execute the project.

In January 2018, a foundation stone was laid at the proposed project location. A construction contract for the plant was awarded to BHEL. Plans include establishing a captive coal jetty to import coal for the plant. Construction began on the jetty in mid-2018, and completion is planned for 2021. In September 2018, it was reported that fishermen were protesting construction of the jetty, saying it affected fish migration and restricted their movement.

Construction on the coal plant began in 2019. The plant was reported to be 2 x 660 MW.

Following severe flooding at the construction site caused by monsoon rains in December 2019, local residents alleged that check dams had been broken to allow the removal of stagnant water. The flooding suspended construction work.

As of November 2022, the project was planned for 2024.

In December 2022, it was reported that Udangudi's captive port would be commissioned by June 2023, with 70% of the captive port project work completed. Two full fledged berths capable of receiving vessels up to 85,000 DWT were reportedly commissioned in 2021, but the contractor could not proceed further with the civil works on the approach to the trestle jetty due to unforeseen water obstructions. A revised alignment was finalized in consultation with the Indian Institute of technology Madras.

The May 2023 Broad Status report estimated that Unit 1 would be commissioned in September 2024 and Unit 2 in January 2025. The same schedule was expected as of November 2023, as per updated Broad Status report.

According to the agenda for the Expert Appraisal Committee's (EAC) late June 2024 meeting, TANGEDCO had submitted a proposal for fresh Terms of Reference (ToR) for Stage I of the Udangudi power station. A fresh ToR was needed as ongoing physical work on Stage I was reportedly 83% complete under the existing Environmental Clearance (EC), which was nearing the end of its valid term. In addition, TANGEDCO planned to propose a reduction in the plant’s use of imported coal. The EAC subsequently recommended issuing fresh ToR for Stage I. A ToR certificate was issued in July 2024.

Phase II and III

In September 2015, TANGEDCO applied for a terms of reference for a phase II and III, each also 2 x 660 MW, which was approved in November 2015.

There had been no known developments on phases II and III since 2015, so they appeared to be cancelled.

However, in March 2022, it was reported that the energy department had approved acquisition of 607 hectares for the setting up of stage 2 and 3.

As of November 2022, the expansion was still not permitted.

Regarding Udangudi Phases II and III (or: Stages II and III), a 2023 policy note from the Energy Department provided the following update to the additional phases' progress: "GoTN has accorded approval for the establishment of Udangudi Thermal Power Project Stage II & III- 2x660 MW each. Subsequently, in GO (Ms) 11 dt 23.02.22, GoTN has accorded administrative sanction for acquisition of 1,500 acres of land."

As of September 2024, environmental clearance for Phases II and III had still not been granted, thus the expansion was still not permitted.

Opposition and impacts

The project is threatening the environment, marine biodiversity, and livelihood of the fishing and farming community:

"The coal jetty constructed 8 kms inside the sea is a threat to the fishing community, while the subsequent possibility of seawater intrusion would affect the farming community. Considering the imported coal requirement for the project, the subsequent higher cost of production and the history of severe pollution from different TPS in Tamil Nadu, the local people and environmental activists continue to demand the scrapping of the project. However, the completion of 40% of construction works in Phase 1. Environmental activists question the need for more coal-powered TPS, while the installed capacity of the state is 33,500 MW against the peak demand hovering around 17,000 MW. Several countries have begun to abandon TPS and are moving towards renewable energy sources."

In addition, in June 2022, Thoothukudi Environment Protection Movement Coordinator V Gunaselan also said that accidents caused by stray cattle because of the plant had a social impact that was not studied by the Tangedco authorities. Tangedco did not conduct a Social Impact Assessment (SIA) which mandated Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. "Though the project was initiated in 2008, much earlier to the land acquisition act, it was revised during 2016 and the land earmarked previously was also changed. But the authorities did not conduct SIA," he said.

Uppur proposal

Uppur power station is a proposed 1,600-megawatt (MW) coal plant in Tamil Nadu, India.

In March 2021, the NGT directed Tangedco to conduct "a fresh coal analysis and study the bridge issue" for the plant. The environment ministry was directed to issue a revised Environmental Clearance after conducting an independent enquiry through its Expert Appraisal Committee. The EC was in abeyance.

In May 2021, faced with continuous hurdles, Tangedco reportedly decided to shift the Uppur power station project to Udangudi in Thoothukudi to overcome various issues like the National Green Tribunal order, land litigation, local people agitation, and establishment of the railway line to transport coal. Udangudi is about 200 kilometres away from Uppur.

However, in November 2021, the new state government, which came into office in May, was reportedly working on restarting the power plant in Uppur. (This appeared confirmed by notes in the government's November 2021 Broad Status report.) Two officials from project operator told Reuters that more than 30% of the work was complete and at least 10 billion rupees ($134 million) had already been invested. The officials expect the first of the two units of the Uppur project to be completed in late 2025 or early 2026 (while the first unit at Udangudi was estimated to be ready by 2024).

Ownership

Before TANGEDCO, the project was sponsored in 2008 by Udangudi Power Corporation - a joint venture company under the auspices of state-run Bharat Heavy Electricals Ltd (BHEL) and the TamilNadu Electricity Board.

In 2013, BHEL said it has exited Udangudi Power Corp. by selling its entire stake to joint venture partner Tamil Nadu Generation and Distribution Corp. (Tangedco). Following its restructuring in 2010, Tamil Nadu Electricity Board’s stake in the joint venture was transferred to Tangedco.

Coal supply

Udangudi Power Corporation proposed that it will need 6.74 million tonnes per annum of coal which it states will be sourced from "Talcher Coal fields of Mahanadi Coalfields Limited in Orissa state and 30% Imported Coal from Indonesia, South Africa, Australia, China, etc.)"

Financing

Phase 1: In January 2018, the Rural Electrification Corporation signed a loan agreement of US$1.64 billion with TANGEDCO for the Udangudi Thermal Power Project.

Alternatives

According to a 2021 report titled “White Elephants – New Coal Plants Threaten Tamil Nadu’s Financial Recovery” by Climate Risk Horizons, Tamil Nadu could see a further deterioration of its fiscal situation if it proceeds with the Udangudi Stage I and II (formerly Uppur) projects. Combined, the Udangudi Stage I & II projects will result in an increase in state debt of at least R 20,000 cr. as well as raise power purchase costs, implying either a tariff hike for consumers or an increase in state subsidies. Opting for a combination of renewable energy and battery storage instead of building these coal plants could save the state R 15-20,000 crores over a 6 year period from 2024 to 2030, according to the analysis.

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.