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Home News Power Sector News TN plans to add 3,800 MW power capacity this year

TN plans to add 3,800 MW power capacity this year

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PaneerselvamThe Tamil Nadu government is planning to add 3,800 MW of power in 2011-12 with an investment of Rs 22,800 crore, either under the state sector or through joint ventures. It is also planning to establish a 50 MW solar park in public private partnership (PPP) mode. State finance minister O Paneerselvam said in his interim budget speech that the present installed capacity was 10,237 MW with an average availability of 8,000 MW. But the demand ranges from 10,500 to 11,500 MW, creating a shortage of 2,500 -3,500 MW.

The situation was being managed by resorting to power purchase, utilising wind generation and restriction and control measures, which are expected to be lifted by August 2012, he said.

During 2011-12, the capacity addition expected is about 3,280 MW. "We hope this will improve the power supply position to a considerable extent," he said.

The state government will also speed up the power projects of North Chennai Stage III and Stage IV, Udangudi, Ennore Annexe, Kundah pumped storage. These projects are expected to add 5,100 MW during the next five years.

The government plans to take up the 800 MW Udangudi expansion project at a cost of Rs 4,800 crore, the 1,600 MW Uppur thermal power project (Rs 9,600 crore), the replacement of the 40-year-old existing Ennore Thermal power plant installing 600 MW (Rs 3,600 crore), and 800 MW Tuticorin stage IV (Rs 4,800 crore) during 2011-12.

These would add 3,800 MW with a total investment of Rs 22,800 crore either under the state sector or through joint ventures, the finance minister.

He referred to the "severe financial constraint" of the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), a successor-entity of the Tamil Nadu Electricity Board (TNEB) which had over Rs.40,000 crore debt and Rs.38,000 crore accumulated losses.
In his budget speech, the Finance Minister referred to the government's measures to promote renewable energy, particularly solar energy.

A scheme had been envisaged to energise one lakh street lights with solar power in 1,000 villages at the rate of 20,000 lights per year at a cost of Rs. 248 crore which included Rs.56.40 crore as the Union government's subsidy and Rs.191.60 crore of State funds.

This year, the government would energise 20,000 street lights in 200 villages with solar power at an estimated cost of Rs.49.60 crore (Union government's subsidy: Rs.11.20 crore and the State's share: Rs.38.40 crore).


Source- Business standard


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