 "TN starts works on super-critical thermal power plant")
Chief minister J Jayalalithaa laid the foundation stone for the 600-Mw plant, which is coming up in north Chennai.
The Rs 4,596-crore Ennore Thermal Power Station (ETPS) is expected to start producing power in 42 months.
For the project, Lanco Infratech, has bagged works for Rs 3,961 crore. The state in March 2012, had given its approval to set up the plant.
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Faced with power shortage, Tamil Nadu has taken steps to bring new generation capacities while deciding to bail out the state Electricity Board from the debt burden.
In the last three years, it added around 2,500-Mw fresh capacity; signed long-term power purchase agreements (PPA) for 3,330-Mw while 500-Mw was through medium-term PPAs.
With the financial assistance of the KfW, a German government-owned development bank, the state is planning to set up a Rs 1,593-crore green transmission line.
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Besides this, with the assistance from Japanese agencies, transmission and distribution projects worth Rs 3,572 crore and Rs 5,000 crore would be taken up. In the state Budget 2014, Tamil Nadu said it would take over the liabilities of state Generation and Distribution Corporation Ltd (Tangedco) worth around Rs 2,000 crore in 2014-15.
This is part of the financial restructuring plan.
The state government has already taken over Tangedco’s loans worth Rs 1,000 crore out of Rs 6,353 crore as part of this.
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In 2013-14, a tariff subsidy of Rs 4,970 crore had been provided to it. In addition, Rs 2,153 crore has been released as equity share capital assistance.
Continuing this, Rs 5,400 crore has been provided in the Budget Estimates 2014-15 for tariff subsidy and Rs 2,000 crore under the share capital assistance.