The Hindu Business Line : TNEB lines up 2,500 MW projects

GOLDEN JUBILEE PLANS: The Tamil Nadu Electricity Minister, Mr Arcot N. Veerasamy (right), and the TNEB Chairman, Mr Hans Raj Verma, at a press conference in Chennai on Tuesday. — Bijoy Ghosh

Chennai June 26 The Tamil Nadu Chief Minister, Mr M. Karunanidhi, will unveil over 2,500 MW of power projects proposed by the Tamil Nadu Electricity Board (TNEB) on July 2 during its golden jubilee celebrations, according to the Electricity Minister, Mr Arcot N. Veerasamy.

Speaking to newspersons on TNEB's plans, he said that the projects to be unveiled are: North Chennai Thermal Power Station of 500 MW (a joint venture with NTPC); Mettur Thermal Power Station (500 MW); Kundah Pumped Storage Hydroelectric Project (500 MW) and Tuticorin Thermal Power Project (2x500 MW) - a joint venture with NLC.

It would take at least 30 months for these projects to be completed.

In addition, Tamil Nadu's share from the 2,000 MW Koodangulam atomic power station, expected to go on stream next year, would be 806 MW.

Most power projects that would be set up in the future would have to be coal-based projects.

The only option for cheap power for Tamil Nadu would be natural gas-based projects.

But the natural gas resource in Tamil Nadu is not sufficient. Reliance Industries Ltd has agreed to supply piped gas from the KG Basin.

It has committed to the Government that it would supply any surplus over the requirement for household and industry use for power generation, he said.

Supplies are expected to commence from December 2008 for Tamil Nadu and Puducherry, he added.

Rly Electrification

On the Railway Ministry seeking concession in power tariff for electrification, he said that the Tamil Nadu Government has suggested to the Railways Ministry that it set up a 1,000 MW power project in State.

The Government would also offer assistance in supporting the project. This would mean that the Railways would have a captive power project. The Ministry has agreed to consider the proposal, he said.

No unbundling

The State is against unbundling the TNEB as it is an efficient structure in its existing form. Revenue collection efficiency is at 99 per cent and transmission and distribution losses at 18 per cent (among the lowest).

It is only inefficient utilities that opt for unbundling, he said.

Since inception in 1957, the TNEB has grown from 256 MW of installed capacity to 10,098 MW now. Starting with a consumer base of 4.30 lakh, it now serves over 185.82 lakh.