Tamil Nadu CM Vijay unveils mega energy plan with Rs 20,000-crore thermal power plant

Tamil Nadu Chief Minister Vijay on Monday announced a Rs 20,800-crore supercritical thermal power project in Thoothukudi as part of a broader push to strengthen the state's power infrastructure, along with new substations in Chennai and a Rs 33,066-crore transmission improvement scheme.

Making the announcements in the state Assembly, the 52-year-old actor-politician said a new 1,600 MW supercritical thermal power station would be established at the existing Thoothukudi Thermal Power Station complex under the public-private partnership model.

The project will comprise two 800 MW units and cost an estimated Rs 20,800 crore. The existing five 210 MW coal-based units at the complex, with a combined capacity of 1,050 MW, will be progressively replaced in accordance with environmental regulations.

Vijay said Tamil Nadu's growing electricity demand made it necessary to invest in generation, transmission and distribution infrastructure. While the state government is expanding renewable energy and battery storage, thermal power remains important during periods of high demand, he said.

TAMIL NADU'S Rs 33,066-CRORE TRANSMISSION SCHEME

The government will implement the Tamil Nadu Transmission Improvement Scheme at an estimated cost of Rs 33,066 crore to strengthen the transmission network and efficiently move electricity from generating stations to major consumption centres.

The scheme will include 196 new substations and 15,000 km of new transmission lines, besides strengthening existing transmission infrastructure.

Vijay said his government was also working on battery storage systems to store surplus renewable electricity and use it when required, including during periods of high demand.

CHENNAI POWER NETWORK GETS RS 1,762 CRORE ALLOCATION

To improve electricity supply in Chennai and address disruptions caused by flooding during the monsoon as well as high demand during summer, the state government will undertake distribution infrastructure works worth Rs 1,762 crore.

The plan includes 36 new 33/11 kV substations, installation of new distribution transformers and replacement of damaged or obsolete cables, conductors, pillar boxes, circuit breakers and other equipment.

Vijay said greater investment in the power sector was necessary to meet the state's growing energy requirements, adding that Tamil Nadu had remained heavily dependent on thermal power during periods of peak demand.

SEMICONDUCTOR AND FINTECH PUSH

Vijay announced a semiconductor and electronics manufacturing park in Kancheepuram district at a cost of Rs 175 crore. The park is expected to attract around Rs 2,000 crore in investment and create about 5,000 jobs.

The government will also establish a fintech hub in Coimbatore at a cost of Rs 400 crore through a public-private partnership.

MILK PROCUREMENT PRICE HIKED

Vijay also announced an increase in the milk procurement price from Rs 41 to Rs 44 per litre, citing rising cattle-feed costs and demands from milk producers.

He said the decision was taken with the interests of milk producers in mind and would result in an additional expenditure of Rs 770 crore for the government.

The announcements span power generation and distribution, industrial investment and agriculture, with the government pitching them as measures to meet Tamil Nadu's growing energy needs and boost jobs and economic activity.