TN draws up plan to attract Rs 4.5 lakh crore in power sector

Tamil Nadu has drawn up a vision plan for the power sector to attract around Rs 4.50 lakh crore. The Vision 2023, which was released by chief minister J Jayalalithaa recently, envisages new power generation capacity located within the state or elsewhere, and would account for a bulk of the investments at Rs 2.80 lakh crore.

Five power generation projects are estimated to add 20,000 Mw of capacity. Of this around 5,000 Mw would come up before 2017. Tamil Nadu is facing a shortfall of around 4000 Mw of power. While Chennai is facing scheduled power cuts for two hours and compulsory power holiday, in smaller cities and towns power cuts range from 10-12 hours.

 

The government said power cuts would continue up to June and that it was making all efforts to streamline the power projects.

According to the document, ultra mega power projects will attract around Rs 50,000 crore, case 2 bidding Rs 60,000 crore, wind power Rs 25,000 crore, solar power Rs 55,000 crore, LNG terminal Rs 20,000 crore and gas grid Rs 20,000 crore. The state is planning to set up two port-based UMPP will a capacity of 4,000 Mw each, wind power to create incremental generation capacity of 5,000 Mw and 5,000 Mw in solar energy.

Besides, the transmission and distribution sector will attract Rs 2 lakh crore and investment in smart grid around Rs 20,000 crore.

Select high capacity transmission corridors will be bid out on a PPP basis to establish evacuation infrastructure, the document stated.

“The government will implement reforms in the sector in a progressive manner so that the benefits of competition are delivered to consumers by way of reliable power supply at the most economic price and commercial terms,” it said.