Investment Plan Energy


Power Generation, Transmission and Distribution Systems (through renewable and non-renewable sources)

The total investment in the energy sector is estimated at Rs. 4,50,000 crore. New power generation capacity dedicated for Tamil Nadu, located within the state or elsewhere, will account for a bulk of the investments at Rs. 280,000 crore.

Five power generation projects (under Case 2 bidding as per norms of Ministry of Power, Government of India) are estimated to add 20,000 MW of capacity; of this at least 5000 MW would come up before 2017 to make good the shortage of peak power and energy shortage that Tamil Nadu faces at present. In the long run, Tamil Nadu will have sufficient power generation capacity that is owned or secured under long term contracts that becomes the bedrock of an efficient and competitive economy.

Some facets of the strategy for Energy are:

  • Two port based Ultra Mega Power Projects of 4,000 MW each to be set up
  • Selective thrust for green power by maximising investments in Wind Power to create incremental generation capacity of 5,000 MW and 5,000 MW in solar energy.
  • Significant investment required in the Transmission sector to create evacuation capacity for the higher power generation capacity with adequate buffers. Select high capacity Transmission corridors will be bid out on PPP basis to establish the necessary evacuation infrastructure
  • Two Greenfield LNG Terminals with 5 MPTA capacity each and city gas pipeline infrastructure for about 10 towns to be established
  • Establishment of a smart grid system that enables lower the cost of energy to consumers, spark innovation in energy management at all levels in the energy chain across the economy, and improve the reliability and security of the electricity grid. The likely investments in a smart grid system is expected to be Rs. 20,000 crore
  • Government will implement reforms in the Power sector in a progressive manner so that the benefits of competition and innovation are delivered to consumers by way of reliable power supply at the most economic price and commercial terms. This will call for new models of electricity transmission and distribution, which have been successfully implemented in several countries

Summary of Investment

Projects Rs. Crore
Ultra Mega Power Projects 50,000
Case 2 bidding 60,000
Wind Power 25,000
Solar Power 55,000
LNG terminal 20,000
Gas Grid 20,000
Transmission and Distribution 200,000
Investment in Smart Grid 20,000
Total 450,000
The investment target for the six broad groups of infrastructure sectors are as follows:
Total investment Capacity (MW) Amount (Rs Crore)
New thermal generation capacity 20,000 110,000
Incremental renewable capacity 10,000 80,000
Including solar power 5,000
Transmission and Distribution 200,000
LNG terminal, gas grid and smart grid 5 MTPA, 10 cities 60,000

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