The Asian Development Bank (ADB) will provide USD 451 million loan to strengthen power connectivity between the southern and northern parts of the Chennai-Kanyakumari Industrial Corridor (CKIC), the multilateral agency said in a statement.
CKIC is part of the East Coast Economic Corridor (ECEC), in Tamil Nadu. ADB is the lead partner of the Government of India for developing ECEC.
An agreement regarding the loan has been signed between ADB and the central government.
The project will help establish extra-high-voltage transmission link between Virudhunagar and Coimbatore to transfer the additional generation capacity of 9,000 megawatts (MW), including 6,000 MW from renewables, by 2025 to meet the increased power demand in the CKIC.
"This will help reliably evacuate power from these new power plants in the southern CKIC," ADB said.
The project will also build the operational capacity of TANTRANSCO, the state-owned company responsible for transmission, by supporting a financial restructuring plan, better facilities and work environment for women workers, and improved monitoring system for social and environmental impacts.
To support this end, ADB has approved a complementary technical assistance grant of USD 650,000.
The state is aiming to develop the northern Chennai-Tiruchirappalli area of CKIC as a manufacturing centre while targeting the relatively poor southern Madurai-Thoothukudi portion for the development of renewable energy-based power generation.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)