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.

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):

  • Phase I Unit 1, Phase 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 Retired year
Phase I Unit 1 operating coal - unknown 150 subcritical 2012
Phase I Unit 2 operating coal - unknown 150 subcritical 2013
Unit 3 construction coal - unknown 350 subcritical 2024[1]
Unit 4 construction coal - unknown 350 subcritical 2024[1]

Table 3: Unit-level ownership and operator details

Unit name Owner
Phase I Unit 1 Meenakshi Energy Ltd [100.0%]
Phase I Unit 2 Meenakshi Energy Ltd [100.0%]
Unit 3 Meenakshi Energy Ltd [100.0%]
Unit 4 Meenakshi Energy Ltd [100.0%]

Project-level coal details

  • Coal source(s): 70% domestic, 30% imported
  • Permit(s): Terms of Reference: 2010-12-09, October 19, 2009 – Environmental Clearance, October 19, 2009 – Environmental Clearance; Environmental Clearance Compliance Form: 2009-06-03; Environmental Clearance Extension: 2013-10-09

Financing

Source of financing: 10-07-2010 - Loan agreement signed with State Bank of India and other banks, SBI as lead lender[2]

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.[2] 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."[3]

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).[3][4]

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.[5][6] Engie gradually increased its share to 89%.[7]

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,[8] and was planned for operation in 2017-2018.[9]

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.[7]

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."[10]

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.[11] In November 2019 documents, Unit 4 was still listed as expected in October 2019.[12] 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."[12]

National Company Law Tribunal (NCLT)

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.[13]

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.[14]

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."[15]

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.[16]

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.[17]

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.[18]

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."[19]

In May 2023, the Broad Status reported that the NCLT process to approve the liquidation was still underway.[20] 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.[21] In the August 2023 Broad Status, it was reported that the NCLT had approved the plant's transfer to Vedanta Ltd.[22] 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.[23] At the time of reporting, Unit 3 was expected to be commissioned in September 2024, and Unit 4 in October 2024.

Articles and Resources

References

  1. 1.0 1.1 (PDF) https://web.archive.org/web/20240219020106/https://cea.nic.in/wp-content/uploads/thermal_broad/2023/12/DEC_2023_BS_V1.pdf. Archived from the original (PDF) on 19 February 2024. {{cite web}}: Missing or empty |title= (help)
  2. 2.0 2.1 Monthly Report on Broad Status of Thermal Power Projects in the Country, Central Electricity Authority, November 2013
  3. 3.0 3.1 "Our Vehicles for Implementation," Meenaskshi Energy website, accessed October 2013
  4. "Ongoing initiatives," Meenakshi Energy website, accessed August 2014
  5. "GDF to pick up 74% stake in Meenakshi Energy," The Hindu, December 17, 2013.
  6. "CODs for coal based thermal power plants," Government of India Ministry of Power Central Electricity Authority,"] Dec 24, 2014
  7. 7.0 7.1 "Engie to sell stake in Meenakshi plant," Live Mint, February 25, 2016
  8. "Engie Said to Plan Over $1 Billion Sale of Asian Coal Plants," Bloomberg, Aug 17, 2015
  9. "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, July 2016
  10. "LOK SABHA STARRED QUESTION NO.545 ANSWERED ON 05.04.2018," India Power Ministry, April 5, 2018
  11. "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, April 2018
  12. 12.0 12.1 "Monthly Report on Broad Status of Thermal Power Projects in the Country," Government of India Ministry of Power, November 2019
  13. "Lenders put Meenakshi Energy’s 1,000-mw plant on sale," Financial Express, July 31, 2018
  14. "NCLAT upholds NCLT order to initiate insolvency against Meenakshi Energy," Business Standard, September 10, 2020
  15. “Broad Status Report,” Thermal Project Monitoring Division , Central Electricity Authority, November 2021
  16. "Detailed Invitation for Expression of Interest to Submit Resolution Plan(s) for Meenakshi Energy Limited," Meenakshi Energy Limited, January 25, 2021
  17. "Power crisis forces states to pay dues," Times of India, May 11, 2022
  18. "Tackling power crisis: NTPC to run two stressed plants on O&M basis," Financial Express, May 10, 2022
  19. "Vedanta set to acquire Meenakshi Energy for Rs 1,440 crore," Economic Times, January 19, 2023
  20. BROAD STATUS REPORT OF UNDER CONSTRUCTION THERMAL POWER PROJECTS Central Electricity Authority, May 2023
  21. Broad Status Report of Under Construction Thermal Power Projects (June, 2023) Central Electricity Authority, Government of India, June 2023
  22. Broad Status Report of Under Construction Thermal Power Projects (August, 2023), Central Electricity Authority, Government of India, Aug. 2023
  23. Broad Status Report of Under Construction Thermal Power Projects (December, 2023), Central Electricity Authority, Government of India, December 2023

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.