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Power Grid to invest Rs 30,000 cr to strengthen transmission line from North to South

Business Standard:  March 09, 2015

Chennai: Power Grid Corporation of India Limited is set to invest about Rs 30,000 crore for augmenting transmission capacity, said Union Minister of State for Power Piyush Goyal.

Speaking to reporters after meeting Tamil Nadu Chief Minister O Panneerselvam at Chennai on Saturday, the minister said the Centre was committed to support the power sector in Tamil Nadu, including the Power Grid’s project to increase transmission facilities from the north to southern states. This would make sure that the growing need of power in the next few years is sufficiently met.

Within three years, these projects would start taking shape, said the Union minister, and they will help to evacuate power to southern states and the main beneficiary would be Tamil Nadu.

He said on state’s demand for additional allocation from the Kudankulam Nuclear Power Plant, the Centre has agreed to give 100 Mw additional unallocated power from the plant’s Unit II, which is expected to go on commercial production soon.

The minister said for the Deendayal Upadhyaya Gram Jyoti Yojana for rural India, particularly for farmers, the Centre will give assistance to the tune of around Rs 1,000 crore to Tamil Nadu, which is among the first states to benefit from the scheme.

Also, for the Integrated Power Development Scheme (IPDS), which is for urban areas, the Centre would approve nine towns at an investment of nearly Rs 363 crore.

He added the finance commission had approved Rs 1,051-crore assistance to Tamil Nadu for the renewable energy projects. In March, the government is expected to release the fund to the state.

The state government has installed capacity of over 8,000 Mw in renewable energy.

Today Tamil Nadu has installted capacity of over 8,000 mega watt (MW) in renewable energy, predominately wind.

Centre told to expedite Cheyyur power project

The Tamil Nadu government on Saturday asked the Centre to expedite the bidding process for the Cheyyur ultra mega power project (UMPP). A Central committee has undertaken a study on UMPP projects.

Piyush Goyal said the government is planning to auction all new UMPPs. “An expert committee in Delhi is reviewing the documents and once the report of the committee is out, we will also need to get some approvals from the state government and the National Green Tribunal. As soon as the approvals come in, we shall once again start the bidding process and the government is looking at plug-and-play projects and not half-baked projects,” said the minister.

It may be noted Tamil Nadu government has already acquired land for the 4,000-Mw project and it is waiting for Centre's decision to take up the project.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

x IBEF : India Brand Equity Foundation