ADB to give $451Mn for Chennai-Kanyakumari Industrial Corridor power links
The Asian Development Bank will provide a $451 million (appx. Rs.3,200 crore) loan to strengthen power connectivity between southern and northern parts of Chennai-Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu. As per ADB, the Manila-headquartered multilateral agency the total cost of the project is $653.5 million, of which the government will provide $202.5 million.
About Chennai-Kanyakumari Industrial Corridor (CKIC)
On January 2019 Tamil Nadu Government passed a bill to amend Tamil Nadu Industrial Township Area Development Authority Act, 1997 (TNITADA) to turn CKIC project worth Rs.64.48 billion into reality.
The first phase of CKIC project will have Madurai-Virudhnagar-Dindigul-Theni and Thoothukudi-Tirunelveli nodes. The focus of CKIC will be on manufacturing.
ADB has been assisting in developing CKIC, which covers Tamil Nadu’s 23 out of 32 districts, accounting for 64% of Tamil Nadu’s area and 70% of state population. The ADB project will allow more power, (which includes renewable energy) to be transferred from new generation facilities in south CKIC to north, where demand is high.
The project includes constructing 400- kilovolt kV network to pool power generated at renewable and thermal power plants in Thoothukudi district to Virudhunagar district in Tamil Nadu. An extra-high voltage 765- kV transmission link for transferring 9,000 MW of extra capacity will be esablished from Virudhunagar in southern CKIC northwards to major industrial center of Coimbatore and state capital Chennai. The estimated date of completion of project is by end of 2024.
CKIC will help in promoting Tamil Nadu’s economic development by delivering a more reliable and competitive power supply for industry and services within the state, which will in turn increase jobs and improve livelihoods.
Category: Economy & Banking Current Affairs