TN govt signs MoU with German bank to implement green power corridor
CHENNAI: Tamil Nadu Transmission Corporation has signed a memorandum of understanding for a loan with German bank KFW to implement phase two of Green Energy Corridor (GEC) in the state. The Centre has approved Rs 719.79 crore for the project in Tamil Nadu, including grant of 33% from the Ministry of New and Renewable Energy, while 47% cost of the project will be funded by the loan from KFW and the remaining 20% as equity from the Tamil Nadu Transmission Corporation Limited (Tantransco).
A senior Tantransco official told TNIE, as per the ministry’s instruction, the tender must be floated by December 2023. The state-owned power utility has planned to start the bidding process sooner since it has signed an agreement with KFW. The work has been scheduled to be completed by 2025-2026.“GEC phase-2 scheme will add 10,753 circuit kilometres of transmission lines and 27,546 mega-volt-amperes capacity of substations in seven states - Gujarat, Himachal Pradesh, Karnataka, Rajasthan, Tamil Nadu, and Uttar Pradesh,” he said.
In Tamil Nadu, Tantransco would establish a 400kV substation at Samugarengapuram in Tirunelveli district, three 230kV substations at Poolavady and Kongalnagaram in Tiruppur district and Muppandal in Kanyakumari district under phase 2, the official said.Another official pointed out that this scheme would help create intra-state transmission infrastructure required for evacuating 4,000MW from renewable energy power projects by setting up 624 circuit km of transmission lines in the state.
The ministry has allowed dividing projects into packages for ease of tendering and implementation, but the power utility is yet to decide on it, as top officials are discussing the issue.“The scheme’s ultimate goal is to evacuate green energy and transmit it to other states. As reducing carbon footprint is essential, the union government has implemented such programmes,” said K Kasthurirangan, president of Indian Wind Power Association. “Besides, there will be a chance to increase green energy power generation across the country by implementing GEC,” he added.M Murugan, a Tirunelveli-based wind power producer, stated that the GEC Phase II will allow young entrepreneurs to foray into the sector.