New Delhi [India]: India and Asian Development Bank (ADB) on Thursday signed a 451 million dollar loan to strengthen power connectivity between southern and northern parts of Chennai-Kanyakumari Industrial Corridor (CKIC).
CKIC is a part of East Coast Economic Corridor (ECEC) in Tamil Nadu and ADB is the lead partner of government for developing ECEC, according to an official statement.
The signatories to the loan agreement were Sameer Kumar Khare, Additional Secretary (Fund Bank and ADB) at the Department of Economic Affairs, and Kenichi Yokoyama, Country Director of ADB's India Resident Mission.
"The project will help Tamil Nadu state government to 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 southern CKIC to industrial hubs in the state's northern region," said Khare after signing the loan agreement.
"The project will provide an impetus to industrial development of CKIC which ADB has been assisting through strategic planning and investments in infrastructure while facilitating industrial investments. They are expected to enhance industrial competitiveness while creating well-paid jobs to support the state's rapid economic transformation," said Yokoyama.
The state government has identified quality infrastructure including a reliable power supply as a key prerequisite for its further economic development. The state is aiming to develop the northern Chennai-Tiruchirappalli area of CKIC as a manufacturing centre while targeting relatively poor southern Madurai-Thoothukudi portion for development of renewable energy-based power generation because of availability of wind and solar resources.
The project will help establish extra-high-voltage transmission link between Virudhunagar and Coimbatore to transfer the additional generation capacity of 9,000 megawatt (MW), including 6,000 MW from renewables, by 2025 to meet the increased power demand in CKIC. This will help reliably evacuate power from these new power plants in the southern CKIC.
The project will also build the operational capacity of TANTRANSCO, the state-owned company responsible for transmission, by supporting a financial restructuring plan, better facilities and work environment for women workers and improved monitoring system for social and environmental impacts. To support this end, ADB has approved a complimentary technical assistance grant of 650,000 dollars.