ADB, India ink $451 mn loan to strengthen power connectivity
The project will help establish extra-high-voltage transmission link between Virudhunagar and Coimbatore
The Asian Development Bank (ADB) and the government of India inked $451 million loan to strengthen power connectivity between the southern and northern parts of the Chennai-Kanyakumari Industrial Corridor (CKIC) in the state of Tamil Nadu.
The CKIC is part of the East Coast Economic Corridor (ECEC). ADB is the lead partner of the government of India for developing ECEC.
The project will help Tamil Nadu government meet the increasing demand for power supply from industry and commercial enterprises in the state through transfer of power from new generation facilities, including renewable energy, in the southern CKIC to industrial hubs in the state’s northern region.
The project will help establish extra-high-voltage transmission link between Virudhunagar and Coimbatore to transfer the additional generation capacity of 9,000 MW, including 6,000 MW from renewables by 2025 to meet the increased power demand in CKIC.
The project will also build operational capacity of TANTRANSCO by supporting a financial restructuring plan, better facilities and work environment for women workers, and improved monitoring system for social and environmental impacts.
For this, ADB has approved a technical assistance grant of USD 6,50,000.