MNRE cancels proposal for 500 MW solar park project in Tamil Nadu

It was in 2017 that the government announced that a 500 MW solar photovoltaic park would come up at Kadaladi. Former CM J Jayalalithaa had in 2016 announced a 4,000MW thermal power plant at the same site

Chennai: In a major setback to Tangedco and the Tamil Nadu government, the Union ministry for renewable power (MNRE) has cancelled the proposal for a solar park at Kadaladi in Ramanathapuram district. The decision was made at a meeting convened by the MNRE secretary recently to assess the performance of solar parks. The reason for cancellation, sources said, was tardy progress in its implementation.

It was in 2017 that the government announced that a 500 MW solar photovoltaic park would come up at Kadaladi. Former CM J Jayalalithaa had in 2016 announced a 4,000MW thermal power plant at the same site. Problems in obtaining environmental clearance for the thermal power plant is what prompted the state government to shift to the solar park, said sources. When the government announced the setting up of the Kadaladi solar park, it had claimed that the park would be the first ever to be set up by any discom. But even after three years, there was no progress on the project. Even land acquisition is not complete, said officials.

Tangedco representatives did not attend the recent review meeting convened by the MNRE secretary. “We were not aware of the meeting. Our information is that the Union government cancelled the project as no one representing Tangedco attended the review meeting. The decision came as a surprise to us,” a senior Tangedco official told TOI.

“Solar Energy Corporation of India (SECI) had offered to invest and develop the solar project on land to be provided by Tangedco on build-own-operate (BOO) basis. Tangedco would have got 100% of power generated by the park,” said the official. Tangedco plans to approach MNRE to reconsider its decision to cancel the project. “A lot of ground work has been done to identify the land, measuring about 1,500 acres,” said the official.

This is the second setback for Tangedco in recent times. In December last, Union power minister R K Singh wrote a letter to chief minister Edappadi K Palaniswami stating that it will be difficult for PFC and REC to provide loans based on the present financial situation of Tangedco. Around 5,000MW of thermal and solar power projects will get stuck if funding stops.

Source- Times of India