TN’s Tantransco inks deal with KFW on green energy

08 Dec 2022 CW Team

The Tamil Nadu Transmission Corporation has signed a memorandum of understanding with German bank KFW for a loan to implement phase two of the Green Energy Corridor (GEC).

The Centre has approved Rs 7.20 crore for the project in Tamil Nadu, including grant of 33% from the Ministry of New and Renewable Energy, while 47% of the project cost will be funded by the loan from KFW and the remaining 20% as equity from the Tamil Nadu Transmission Corporation Ltd (Tantransco).

As per the ministry’s instruction, the tender must be floated by December 2023; but a senior Tantransco official said the state-owned power utility plans to start the bidding process sooner since it has signed the agreement with KFW. The work is scheduled to be completed by 2025-2026.

“GEC phase-2 will add 10,753 circuit kilometres of transmission lines and 27,546 mega-volt-ampere 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 4,000 MW from renewable energy power projects by setting up 624 circuit km of transmission lines in the state.

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