Bharat Heavy Electricals Ltd, the public sector power equipment major, has begun the process of winding up its joint venture with the Tamil Nadu Electricity Board, Udangudi Power Corporation Ltd.

The JV was formed in 2007 to put up a thermal power project at the town of Udangudi in southern Tamil Nadu. The proposal was to put up two units of 800 MW each.

In February, the Government of Tamil Nadu pulled the project out of the joint venture company and said it would do it by itself — in the “State sector” — citing “lack of co-operation” on the part of BHEL as the reason. No work had happened till then, except for BHEL and the State Government bringing into the JV Rs 32 crore each.

BHEL, subsequently, wrote to the Government of Tamil Nadu asking it to reverse its decision, but to no avail.

North Chennai plant

On Friday, the Chairman and Managing Director of BHEL, B.P. Rao, told a press conference in Tiruchi, that BHEL had started proceedings to wind up the joint venture because “Government of Tamil Nadu is not interested in it.”

But there has been good progress in the other projects that BHEL is involved in Tamil Nadu, Rao said.

The first of the two power plants (Unit II) of the North Chennai Thermal Power Project will go on stream in October, he said. The other will, in December.

The first of the two units of the 1,000-MW Vallur plant, also in north Chennai, is all ready to commence generation. The 1,200-MW Tuticorin plant of Neyveli Lignite Corporation-TNEB joint venture, after some hiccups, is now back on track.

BHEL is involved in all these projects as the equipment supplier.

> mramesh@thehindu.co.in

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