Chennai, Oct 10 (UNI) In a bid to wipe out power shortage in the long term, the Tamil Nadu Government today announced the setting up of two power plants to generate 1,600 MW of power at a total cost of Rs 7,627 crore besides taking steps to streamline electricity supply.
An official press release here said an agreement for setting up the new power plants was signed between Rural Electrification Corporation (REC) Chairman and Managing Director P Umashankar, Tamil Nadu Electricity Board Chairman S Machendranathan and Neyveli Lignite Corporation (NLC) Chairman and Manging Director J N Prasanna Kumar in the presence of Tamil Nadu Chief Minister M Karunanidhi at the Secretariat.
Under the agreement, TNEB and NLC will set up two power plants of 500 MW each at the Tuticorin Thermal Power Plant at a total cost of Rs 4,909 crore. The REC would provide a loan of Rs 3,437 crore for the purpose.
In addition, a 600 MW power plant will come up at the North Chennai Thermal Power Plant under the second phase of expansion.
This would cost Rs 2,718 crore. The REC would give a loan of Rs 2,175 crore.
Thus, the REC would loan the TNEB a total of Rs 5,612 crore for setting up the power plants.
MORE UNI GM AK VC1232