Tamil Nadu Explores PPP Route for Rs 4,500 Crore Power Transmission Project
POWER & RENEWABLE ENERGY

Tamil Nadu Explores PPP Route for Rs 4,500 Crore Power Transmission Project

In a pioneering move, the Tamil Nadu Transmission Corporation (Tantransco) is venturing into the tariff-based competitive bidding (TBCB) model to develop a new greenfield 765/400 kV substation in the Coimbatore region. This initiative, part of a larger power transmission project worth Rs 4,500 crore, also includes the development of 240 kilometers of transmission lines extending from Ariyalur to Tirupur, where the new facility will be established. This decision marks a significant shift from traditional state-funded projects to public-private partnership (PPP) models.

The 765 kV substation, located in Uthukuli, Tirupur, will be built on a 100-acre site, with the acquisition of an additional 32 acres currently in progress. The project’s core objective is to enhance the state’s existing transmission infrastructure, reduce power loss during long-distance transmission, and ensure the smooth flow of electricity to various load centers across Tamil Nadu. The new substation will specifically cater to Coimbatore, a crucial load center, by facilitating the export of power from the North Chennai Pooling Station via the Ariyalur 765 kV substation.

This massive power infrastructure project is a key part of Tantransco’s broader plan to develop a robust 765 kV transmission network that will improve efficiency across the state. The new substation will connect with various 230 kV substations, including OK Mandabam, Ponnapuram, Selvapuram, and Palladam, through 47 kilometers of sanctioned 400 kV feeder lines. The feeder lines will further connect to the Edayarpalayam 400 kV substation, ensuring efficient power supply across the region.

A significant advantage of the TBCB route is the avoidance of upfront investment costs by the State utility, making it a more financially viable option. The Tamil Nadu Infrastructure Development Board (TIDB) has issued a tender for appointing a transaction advisor who will oversee the competitive bidding process. Once the advisor is appointed, a subsidiary company will be created to manage the project’s execution, acting as the transmission service provider.

This 765 kV transmission network is also linked to several other crucial energy infrastructure projects. The North Chennai Pooling Station (NCPS) is already operational and plays an important role in evacuating power from the newly commissioned 800 MW North Chennai Thermal Power Station (NCTPS) Stage III. In the future, it will also support the power evacuation from the proposed 1,320 MW Ennore Special Economic Zone (SEZ) Thermal Power Plant and the 660 MW Expansion of the Ennore Thermal Power Station (ETPS). Both of these developments are expected to further bolster the state’s power supply and contribute to energy security in Tamil Nadu.

Additionally, the Tantransco project has broader implications for the state’s energy landscape, including supporting the increased demand for power as urbanization expands and industrial activity accelerates. The successful implementation of this PPP-based power transmission initiative will likely set a precedent for similar projects in the future, transforming the state’s energy infrastructure and attracting private investment in the sector.

In a pioneering move, the Tamil Nadu Transmission Corporation (Tantransco) is venturing into the tariff-based competitive bidding (TBCB) model to develop a new greenfield 765/400 kV substation in the Coimbatore region. This initiative, part of a larger power transmission project worth Rs 4,500 crore, also includes the development of 240 kilometers of transmission lines extending from Ariyalur to Tirupur, where the new facility will be established. This decision marks a significant shift from traditional state-funded projects to public-private partnership (PPP) models. The 765 kV substation, located in Uthukuli, Tirupur, will be built on a 100-acre site, with the acquisition of an additional 32 acres currently in progress. The project’s core objective is to enhance the state’s existing transmission infrastructure, reduce power loss during long-distance transmission, and ensure the smooth flow of electricity to various load centers across Tamil Nadu. The new substation will specifically cater to Coimbatore, a crucial load center, by facilitating the export of power from the North Chennai Pooling Station via the Ariyalur 765 kV substation. This massive power infrastructure project is a key part of Tantransco’s broader plan to develop a robust 765 kV transmission network that will improve efficiency across the state. The new substation will connect with various 230 kV substations, including OK Mandabam, Ponnapuram, Selvapuram, and Palladam, through 47 kilometers of sanctioned 400 kV feeder lines. The feeder lines will further connect to the Edayarpalayam 400 kV substation, ensuring efficient power supply across the region. A significant advantage of the TBCB route is the avoidance of upfront investment costs by the State utility, making it a more financially viable option. The Tamil Nadu Infrastructure Development Board (TIDB) has issued a tender for appointing a transaction advisor who will oversee the competitive bidding process. Once the advisor is appointed, a subsidiary company will be created to manage the project’s execution, acting as the transmission service provider. This 765 kV transmission network is also linked to several other crucial energy infrastructure projects. The North Chennai Pooling Station (NCPS) is already operational and plays an important role in evacuating power from the newly commissioned 800 MW North Chennai Thermal Power Station (NCTPS) Stage III. In the future, it will also support the power evacuation from the proposed 1,320 MW Ennore Special Economic Zone (SEZ) Thermal Power Plant and the 660 MW Expansion of the Ennore Thermal Power Station (ETPS). Both of these developments are expected to further bolster the state’s power supply and contribute to energy security in Tamil Nadu. Additionally, the Tantransco project has broader implications for the state’s energy landscape, including supporting the increased demand for power as urbanization expands and industrial activity accelerates. The successful implementation of this PPP-based power transmission initiative will likely set a precedent for similar projects in the future, transforming the state’s energy infrastructure and attracting private investment in the sector.

Next Story
Infrastructure Urban

Tamil Nadu Pushes for 15 Cities in Smart City 2.0 Initiative

Tamil Nadu has urged the Union Ministry of Housing and Urban Affairs to include 15 of its cities in the upcoming Smart City 2.0 initiative, expected to commence in 2025. The program, designed to enhance civic, mobility, and infrastructure development, aims to select 100 cities nationwide through a special purpose vehicle framework. Municipal Administration Minister K. N. Nehru and DMK Parliamentary Party Leader Kanimozhi formally presented the request to Union Minister Manohar Lal Khattar. Under the initial Smart City program launched in 2015, Tamil Nadu was allotted 12 cities, including Chen..

Next Story
Infrastructure Transport

NHAI Begins Road Widening at Old Katol Naka; Completion by April 2025

The National Highways Authority of India (NHAI) has commenced road widening work between Old Katol Naka and Fetri, aiming to ease the challenges faced by motorists due to the road's narrow width. The NHAI assured the Nagpur bench of the Bombay High Court that the project would be completed by April 2025. This commitment was made during a hearing on Monday before Justices Nitin Sambre and Vrushali Joshi, with the next session scheduled for December 17. The High Court raised concerns about the lack of tree plantations along several highways. In response, NHAI pledged to penalise contractors wh..

Next Story
Infrastructure Transport

Underwater Tunnel in Brahmaputra: Assam CM Meets Minister Gadkari

Assam Chief Minister Himanta Biswa Sarma met Union Minister of Road Transport and Highways Nitin Gadkari to discuss the commencement of the ambitious underwater tunnel project in the Brahmaputra River. The proposed tunnel will connect Gohpur and Numaligarh, linking the north and south banks of the Brahmaputra. Sarma acknowledged the central government’s robust support for the project, expressing gratitude for its assistance. Sharing updates on social media platform X, Sarma said, "Happy to share! Just concluded an excellent meeting with Hon'ble Union Minister Shri @nitin_gadkari Ji. I am tru..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000