Chennai, Jan 24: Tamil Nadu Electricity Minister Arcot N Veerasamy today informed the Assembly that the State government had planned to set up ultra mega power projects in Cuddalore and Nagapattinam districts under the Merchant Power Project.
Replying to Congress MLA E S S Raman, he said the proposed mega project would generate 18,000 MW of power.
Explaining the rationale behind allowing the merchant power plants, the minister said the State experienced power shortage, particularly during summer. During such times, the Tamil Nadu Electricity Board (TNEB) bought power from other states. The cost of power from the merchant power plants was expected to be cheaper than the power being bought from other states.
Mr Veerasamy disclosed that the TNEB would buy power from the Merchant Power Plants at the rate of Rs 2.50 per unit.
''The State government will ensure that the rate would not go beyond Rs 2.50 per unit'', he said, adding ''the rates would be based on the purchase of coal from other countries by the Merchant plants''.
''The State government will be setting up a Transmission Corporation and through that the generated power would be transmitted through grids to other states. This process would cost Rs 25,000 crore'', he said.
The minister informed the House that the state government would ensure that there would not be any power cuts this summer.