Cheyyur plant not viable

Experts say price of electricity from the 4,000-MW project will be fivetimes higher than the tariff at other ultra mega power plants

The proposed 4,000-MW ultra mega power project at Cheyyur is financially not viable and would put an upward pressure on electricity tariff. This would also make electricity unaffordable for consumers, says a report.

The report prepared by US-based Institute for Energy Economics and Financial Analysis (IEEFA) for Chennai-based Indian Institute of Public Policy explains that in the first year of its operations, which is 2021, the tariff for consumers would be Rs. 4.9 per unit. On an average, tariff would be Rs. 5.95 per unit over its 40 year life.

“This pricing is five times higher when compared to the tariff at the other ultra mega power plants (UMPPs) and coal-fired power plants,” says Jai Sharda, Managing Partner, Equitorials, a financial analysis firm that studied the economic viability of the Cheyyur plant.

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