Japanese power equipment major Toshiba, which is putting up a turbine-generator manufacturing plant near Chennai, will suffer a setback because the Tamil Nadu Government is yet to fulfil a contractual obligation – strengthening of the bridges between the plant and the Ennore port.

Toshiba JSW Turbine and Generator Pvt Ltd, a joint venture of Toshiba and the JSW group, is investing Rs 800 crore in putting up the plant, which is meant to produce turbines and generators for thermal power projects. Toshiba owns 75 per cent stake in the venture.

The generator weighs over 450 tonnes. When Toshiba was scouting for a location, it liked the site, not far from the Ennore port. But there was a problem – the road from the plant to the Ennore port had five bridges including one over a railway line.

The Tamil Nadu Government agreed to strengthen three stretches of the road and upgrade the bridges so that they would not buckle under the weight of the generator. The bill: Rs 100 crore.

Cost apart, the bridge over the busy railway line is a hassle, involving as it does, the Ministry of Railways.

While an e-mail sent to Mr Itaru Ishibashi, Managing Director, Toshiba JSW, has remained unanswered for over five days, sources in the know say that the delay on the government's part would put the project back by at least one year.

The turbines can still be produced and shipped out of the plant. However, the generators would need to be supplied directly to customers from Toshiba, Japan. The question of who would bear the additional costs of this — Toshiba or the customer — is still moot.

Toshiba is unhappy over the delay, but has initiated dialogue with the new Government in Tamil Nadu.

Sources in the Government told Business Line today that despite the fact that the Rs 100-crore project would benefit only one company “we will do it because it is a commitment”. But they note that even ‘one year' would be “optimistic”.

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