The Asian Development Bank on Monday said it will provide a $451 million (about Rs 3,200 crore) loan to strengthen power connectivity between the southern and northern parts of the Chennai-Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu.
The total cost of the project is $653.5 million, of which the government will provide $202.5 million, the Manila-headquartered multilateral agency said in a release.
The estimated completion date is the end of 2024.
"The ADB project will allow more power, including renewable energy, to be transferred from new generation facilities in the south CKIC to the north, where it is most in demand," said ADB Principal Energy Specialist for South Asia Pradeep Perera.
The project will help promote economic development by delivering a more reliable and competitive power supply for industry and services in the state, which will in turn spur jobs and improve livelihoods, it added.
ADB has been assisting in developing CKIC, which covers 23 of the state's 32 districts and 70 per cent of the state population.
According to the release, the project will establish an extra-high voltage 765-kilovolt (kV) transmission link to transfer the 9,000 MW of extra capacity from Virudhunagar in the southern CKIC northwards to Coimbatore, a major industrial center, and Chennai.
The project includes construction of a 400-kV network to pool power generated at renewable and thermal power plants in Thoothukudi district to Virudhunagar.