ADB, India sign $451 million loan to strengthen Power Connectivity in Tamil Nadu
Government of India and Asian Development Bank (ADB) has signed a $451 million loan for strengthening power connectivity between northern and southern parts of Chennai–Kanyakumari Industrial Corridor (CKIC) which is part of East Coast Economic Corridor (ECEC). ECEC is India’s first coastal economic corridor.
Key Highlights of Project
It will help establish extra-high-voltage transmission link between Coimbatore and Virudhunagar. It will meet increased power demand in CKIC by transfering additional generation capacity of 9,000 megawatt (MW), including 6,000 MW from renewables by 2025. This will help reliably evacuate power from these new power plants in southern CKIC.
It will also build operational capacity of TANTRANSCO (Tamil Nadu Transmission Corporation) by supporting a financial restructuring plan and improved monitoring system for social and environmental impacts. TANTRANSCO is state-owned company responsible for transmission.
It will help Tamil Nadu to meet increasing demand for power supply from industry and commercial enterprises in State through transfer of power from new generation facilities, including renewable energy, in southern CKIC to industrial hubs in northern region of state.
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.
About Chennai–Kanyakumari Industrial Corridor (CKIC)
East Coast Economic Corridor (ECEC) of which CKIC is a part, covers 2500km of India’s coastline. Asian Development Bank (ADB) is lead partner of Government of India for developing ECEC and will invest $500 million in infrastructural development of the project.
Component corridors of ECEC includes 4 Corridors, which will be completed in 3 Phases-
- Phase 1 covers Visakhapatnam–Chennai Industrial Corridor (VCIC) (it was approved by ADB board in October 2016), it lies largely in Andhra Pradesh
- Phase 2 involves Chennai–Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu
- Phase 3 supports Odisha Economic Corridor (OEC) and West Bengal Economic Corridor (WBEC)
Category: Economy & Banking Current Affairs