Cheyyur UMPP will make electricity unaffordable in TN, says report

Even as Tamil Nadu contends with rising electricity rates, the Cheyyur UMPP will place an upward pressure on electricity tariffs in the state, says a research report prepared by US-based IEEFA
The 4,000MW ultra mega power project (UMPP) worth Rs24,200 crore at Cheyyur in Tamil Nadu is financially not viable and would only make electricity unaffordable in the state, says a report.
The report prepared by US-based Institute of Energy Economics and Financial Analysis (IEEFA) for Chennai-based Indian Institute of Public Policy (IIPP), says, “…the tariff for consumers would be Rs4.9 per kWh (unit) in 2021, its first year of operation, and an average tariff of Rs5.95 per unit over its 40 year life. Every year of delay will push up costs further. These rates are up to five times higher than tariff costs at other UMPPs and coal-fired power plants.”

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