TN to invest Rs 925cr in co-generation units

The Tamil Nadu government plans to set up co-generation units in all co-operative and public sector sugar mills in the state at a cost of Rs 925 crore to generate 185 Mw of power.

This was announced by the Tamil Nadu governor Surjit Singh Barnala while addressing the state assembly on Wednesday. All these co-generation units are expected to be operational within 18 months, he said.

According to the Policy Note 2007-08 of the state energy department, co-generation plants in the sugar mills had a total installed capacity of 315 Mw as of February 2007.

There are 38 sugar mills operating in the states. Of these, 16 are in the co-operative sector and 19 in the private sector.

Besides, the state-owned Tamil Nadu Sugar Corporation Ltd operates three sugar mills. At present, 35 mills are functional. Two co-operative sugar mills and one private sector mill are not operational right now, according to industries department.

Tamil Nadu has faced a marked power crisis over the past few months. The state attributed this to a shortfall in power supplied by the central power stations. Neyveli Lignite Corporation was not able to supply the committed quantum of power due to lignite shortage.

Similarly, Kalpakkam and Kaiga nuclear power stations have not been able to produce power at the rated capacity due to inadequate fuel. The power shortfall in the state is estimated at about 650 Mw.

However, the state has been making efforts to tide over the power shortage. It has managed to procure about 300 Mw of power from the Centre out of the latter's pool of unallocated power.

It has also been procuring 150 Mw of power from Kerala and another 150 Mw of power from Assam and Haryana under a swap agreement.