The Tamil Nadu Electricity Board (TNEB) is likely to spend around Rs 1,600 crore to buy power in 2010-11. For the year 2009-10, this is likely to touch Rs 1,577 crore.
The state electricity board has called for tenders in this regard from traders and utilities to supply power during peak hours for April and May, which is 843 Mw and 893 Mw respectively.
TNEB chairman CP Singh said the state was facing a shortage of 1,600-1,800 Mw at present. It would buy power at Rs 6 per unit. The board would impose a two-hour cut in districts this summer.
TNEB has formed a joint venture with Bharat Heavy Electricals Limited to set up a 1,600 Mw thermal power project at Udangudi near Tiruchendur. The project would involve an investment of Rs 8,500 crore. It is yet to get environment clearance and coal linkage, said Singh.
Meanwhile, Power Finance Corporation has to finalise the terms of reference for the proposed 4,000 Mw ultra mega power project at Cheyyur in Kanchipuram district. Study on environmental issues has just started and would take another 15 months, he added.