Question : Revival of Sirkali Power Project

(a) whether NLC India Ltd. which conceived a 4000 MW coal based power project at Sirkali in Nagappattinam district of Tamil Nadu in 2010 has dropped the same in 2017 and started new project in Rajasthan and Uttar Pradesh, if so, the details thereof and the reasons therefor;
(b) whether dropping of power project at Sirkali has deprived jobs and development to the region;
(c) if so, whether the Government has received request for revival of the Sirkali Power project; and
(d) whether the Government is considering to revive the project, if so, the details thereof and if not, the reasons therefor?

MINISTER OF PARLIAMENTARY AFFAIRS, COAL AND MINES

(SHRI PRALHAD JOSHI)

(a & b) NLC India Limited (NLCIL) had proposed to establish a coal based Thermal Power Project of 3960/4000 MW in two phases at Sirkali in the District of Nagapattinam, Tamil Nadu. Talabira II & III coal blocks in the State of Odisha was allotted to NLCIL for meeting the coal requirements of NTPL (a subsidiary company of NLCIL) and the Sirkali Power Project.

The Sirkali Power Project was conceived in 2010, Power Purchase Agreement (PPA) was signed in 2011 and land was not sanctioned. In the changed scenario, when the merit order generation is emerging as a market imperative, demanding cost competitiveness on the part of a power generator to produce / provide cheaper power, it was felt that establishment of a pithead power station of equal capacity (4000 MW) in the vicinity of Talabira Mines in Odisha would avoid transportation of huge quantum of coal for a long distance and thereby reducing the cost of generation of power. Accordingly, power project at Sirkali was dropped at the initial stage only.

(c) No, Sir.

(d) Does not arise in view of (c) above.

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