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TN explores PPP for Rs 4,500-cr power transmission project

2024-12-10

The Tamil Nadu Transmission Corporation (Tantransco) is set to adopt the tariff-based competitive bidding (TBCB) method for a Rs 4,500 crore greenfield power transmission project. This will involve the creation of a 765/400 kV substation in the Coimbatore region, coupled with 240 km of associated transmission lines stretching from Ariyalur to Tirupur, where the substation will be located. This project is aimed at reducing power transmission losses over long distances and improving the efficiency of the state’s power distribution system.

The new 765 kV substation, slated for construction in Uthukuli, Tirupur, will be situated on a sprawling 100-acre site, with the acquisition of 32 acres currently underway. The substation is a key part of Tantransco’s 765 kV transmission network and is expected to play a vital role in supplying power to the key load centres across the state, especially in Coimbatore, a major industrial hub. The power from the North Chennai Pooling Station will be transmitted via the Ariyalur 765 kV substation to this region.

As per the plan, the new Coimbatore 765/400 kV Substation will be connected to 230 kV substations at OK Mandabam, Ponnapuram, Selvapuram, and Palladam, with a 47 km 400 kV feeder line linking to the Edayarpalayam 400 kV Substation. This network expansion is a crucial step toward meeting the increasing power demand from industrial and residential consumers in the region.

The Tamil Nadu Infrastructure Development Board has initiated the process by issuing a tender for the appointment of a transaction advisor to assist with the tariff-based competitive bidding process. The TBCB route offers the state utility a way to avoid upfront investments in infrastructure and instead develop the network through private partnerships. This will help Tantransco meet the growing demand for electricity without straining state resources.