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TN power sector to get funding from Japan

Govt planning Rs 7,000 crore underground hydel project

BS Reporter  |  Chennai 

The Tamil Nadu government on Thursday said the Japanese government had come forward to fund the upcoming power sector infrastructure in the state to the tune of Rs 7,000 crore. These will be taken up by the subsidiaries of the ailing Tamil Nadu State Electricity Board (TNEB).

Apart from this major development, the state announced its intent to invest up to Rs 7,000 crore in developing a new hydro-electric project in the state.

After taking stock of the power sector requirements, the planned amount will find its way into the distribution and transmission projects worth Rs 5,000 crore and, the remaining Rs 2,750 crore will be in the form of debt from the Japan International Cooperation Agency (Jica), at special discount interest of 0.55 per cent a year for a tenure of 30 years.

Speaking in the Assembly, chief minister J Jayalalithaa said: “Setting up of new power projects alone will not solve the problems, proper distribution and transmission infrastructure are also the need of the hour".

The Rs 2,750-crore funding from Jica is for setting up five substations at Guindy, Koratur, Manali and in Coimbatore with 400 kilowatt (Kw) and to develop transmission lines.

Ranked high among the power deficit states, Tamil Nadu is reeling under a shortage of 4,000 Mw every day. To address the power crisis and to cater to the future demands, the government has already announced it would take up power projects worth Rs 21,000 crore.

In the last two years, the state had commenced projects, which can generate 606.5 Mw besides announcing various capacity expansions viz, Ennore 2X660 Mw at Ennore SEZ, 2X660 Mw project at Udangudi and a 2X800 Mw project at Ramanathapuram. The proposed infrastructure and new projects will cater to 85 per cent of the current scarcity.

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First Published: Thu, April 25 2013. 20:32 IST