India : Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project
The Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project will address the core problem of meeting the expected industrial power demand to ensure reliable power supply by augmenting the power transmission capacity between the southern part of the state (Madurai-Thoothukudi), the northern region (Chennai), and the western region (Coimbatore) at 765 kilovolt (kV) level. The proposed investment is expected to provide a transmission corridor to evacuate power from the renewable and thermal power plants to be located in Madurai-Thoothukudi area and supply industrial hubs in the Chennai-Madurai area and in Coimbatore.
The proposed project will have two outputs consisting of:
Project Details
-
Project Officer
Banerjee, Jyotirmoy
Sectors Group
Request for information -
Country/Economy
India -
Sector
- Energy
Related Projects
- Project Name
- Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project
- Project Number
- 51308-001
- Country / Economy
- India
- Project Status
- Active
- Project Type / Modality of Assistance
- Loan
- Technical Assistance
- Source of Funding / Amount
-
Loan 3850-IND: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project Source Amount Ordinary capital resources US$ 451.00 million TA 9843-IND: Institutional Capacity Building of Tamil Nadu Transmission Corporation Limited Source Amount Technical Assistance Special Fund US$ 650,000.00 TA 9843-IND: Institutional Capacity Building of Tamil Nadu Transmission Corporation Limited (Supplementary) Source Amount Technical Assistance Special Fund US$ 350,000.00 TA 9843-IND: Institutional Capacity Building of Tamil Nadu Transmission Corporation Limited (Supplementary) Source Amount Technical Assistance Special Fund US$ 150,000.00 - Operational Priorities
- OP2: Accelerating progress in gender equality
- OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability
- OP6: Strengthening governance and institutional capacity
- Sector / Subsector
Energy / Electricity transmission and distribution
- Gender
- Some gender elements
- Description
The Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project will address the core problem of meeting the expected industrial power demand to ensure reliable power supply by augmenting the power transmission capacity between the southern part of the state (Madurai-Thoothukudi), the northern region (Chennai), and the western region (Coimbatore) at 765 kilovolt (kV) level. The proposed investment is expected to provide a transmission corridor to evacuate power from the renewable and thermal power plants to be located in Madurai-Thoothukudi area and supply industrial hubs in the Chennai-Madurai area and in Coimbatore.
The proposed project will have two outputs consisting of:
(i) Output 1: This will establish a 765 kV power transmission link between the energy generation hub in MaduraiThoothukudi area and load centers in the western and northern parts of the state. This output consists of (a) Virudhunagar (765/400/230 kV, 2x1,500 megavolt amperes [MVA] and 2x500 MVA) substation; (b) 320 km of 765 kV transmission lines from Virudhunagar to Coimbatore; and (c) 356 km of 400 kV transmission lines to link Virudhunagar substation to several 400/230 kV pooling substations for wind and solar power plants; and
(ii) Output 2: This will establish a pooling substation to receive electricity generated from power plants in the Thoothukudi district. This consists of (a) Ottapidaram (400/230/110 kV, 2x315 MVA and 2x200 MVA) substation; (b) 200 km of 400 kV transmission lines to connect Ottapidaram substation with several thermal and renewable power plants; and (c) 90 km of 230 kV and 110 kV transmission lines to connect Ottapidaram substation with nearby load centers.
(iii) : Financial and institutional capacity of Tamil Nadu Transmission Corporation Limited improved. This output will (i) assist TANTRANSCO in implementing the FRP to restore its financial sustainability; (ii) support the financial management action plan (FMAP) to improve the financial management capacity and corporate governance of TANTRANSCO; (iii) facilitate the introduction of gender-sensitive workplace practices; and (iv) enhance the capacity of TANTRANSCO to monitor the environmental and social impacts of transmission projects. The attached TA will support these activities.
- Project Rationale and Linkage to Country/Regional Strategy
The MaduraiThoothukudi area of CKIC has excellent wind and solar resources, of which about 4,000 MW is proposed for development in the next 5 years. In addition, 4,000 MW of thermal capacity additions will also be located in this region. Due to inadequate transmission network capacity, there has been curtailment of wind and solar energy and this will continue to act as a barrier to the further development of renewable energy in the region. These constraints may also cause the reliability of power supply to industrial nodes in ChennaiTrichy area of CKIC and in Coimbatore to deteriorate, hindering further expansion of industrial development of the state.
Required strengthening of the transmission network includes a critical need to improve the transmission connectivity at extra high voltage 765 kilovolt (kV) level between the proposed energy hub in MaduraiThoothukudi area in the southeast region of Tamil Nadu and demand centers in ChennaiMadurai in the northern area of CKIC and Coimbatore. In addition, the proposed renewable energy hubs need to be connected to the 765 kV network through pooling substations at 400 kV level. Industrial parks in MaduraiThoothukudi area also require connectivity at 230 kV level to meet the expected increase in electricity demand.
- Impact
Industrial development and renewable energy utilization in Tamil Nadu enhanced
Project Outcome
- Description of Outcome
Power supply in the CKIC increased in a financially sustainable manner
- Progress Toward Outcome
- Progress will be measured on physical completion of the packages.
Implementation Progress
- Description of Project Outputs
Transmission link from southern CKIC to load centers in northern CKIC established
Pooling substation established in Thoothukudi District
Financial and institutional capacity of TANTRANSCO improved
Strategic recommendation to improve the financial sustainability and operational efficiency of Tamil Nadu power sector made.
- Status of Implementation Progress (Outputs, Activities, and Issues)
- All works and Consultancy contracts envisaged under the loan awarded. The Project is being implemented smoothly.
- Geographical Location
- Tamil Nadu
Safeguard Categories
- Environment
- B
- Involuntary Resettlement
- B
- Indigenous Peoples
- C
Summary of Environmental and Social Aspects
- Environmental Aspects
- The Environmental Consultants are on field, and working with in coordination with the EA towards environmental compliance.
- Involuntary Resettlement
- Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
- During Project Design
- Undertaken.
- During Project Implementation
- Being undertaken.
Business Opportunities
- Consulting Services
- A transaction technical assistance of $500,000 to be financed through TASF Others is proposed to (i) enhance TANTRANSCO's financial management capacity; (ii) address remaining legacy issues from incomplete unbundling of TANTRANSCO (transmission company) from distribution and generation operations of erstwhile Tamil Nadu Electricity Board (TNEB); and (iii) enhance gender inclusivity of the project.
- Procurement
- Advanced procurement action will be used for procurement of EPC contractors for supply and installation of substations and transmission lines. It is likely that contracts up to 30% of the proposed loan amount may be awarded as advanced contracts. The recommended project procurement classification is category A given (i) the presence of high value contracts in excess of $100 million; (ii) TANTRANSCO''s lack of experience in implementing ADB-financed projects.
Contact
- Responsible ADB Officer
- Banerjee, Jyotirmoy
- Responsible ADB Department
- Sectors Group
- Responsible ADB Division
- Energy Sector Office (SG-ENE)
- Executing Agencies
-
Ministry of Finance (Aid Accounts & Audit Division)
Tamil Nadu Transmission Corporation Limited (TANTRANSCO)
Timetable
- Concept Clearance
- 12 Jul 2018
- Fact Finding
- 21 Jan 2019 to 28 Jan 2019
- MRM
- 31 Jul 2019
- Approval
- 04 Nov 2019
- Last Review Mission
- -
- Last PDS Update
- 13 Dec 2022
Funding
Loan 3850-IND
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 04 Nov 2019 | 28 Nov 2019 | 17 Jan 2020 | 30 Jun 2025 | - | - |
| Total (Amount in US$ million) | |
|---|---|
| Project Cost | 653.50 |
| ADB | 451.00 |
| Counterpart | 202.50 |
| Cofinancing | 0.00 |
| Date | ADB | Others | Net Percentage | |
|---|---|---|---|---|
| Cumulative Contract Awards | 01 Jul 2024 | 384.03 | 0.00 | 85% |
| Cumulative Disbursements | 01 Jul 2024 | 284.62 | 0.00 | 63% |
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
|---|---|---|---|---|---|---|
| Rating | Partly satisfactory | - | - | Unsatisfactory | - | - |
TA 9843-IND
| Approval | Signing Date | Effectivity Date | Closing | ||
|---|---|---|---|---|---|
| Original | Revised | Actual | |||
| 04 Nov 2019 | 30 Dec 2019 | 30 Dec 2019 | 30 Nov 2021 | 29 Dec 2024 | - |
| ADB | Cofinancing | Counterpart | Total | |||
|---|---|---|---|---|---|---|
| Gov | Beneficiaries | Project Sponsor | Others | |||
| 1,150,000.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1,150,000.00 |
| Date | Amount |
|---|---|
| 01 Jul 2024 | 1,116,967.61 |
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
|---|---|---|---|---|---|---|
| Rating | Unsatisfactory | - | - | Unsatisfactory | - | - |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
Evaluation Documents See also: Independent Evaluation
None currently available.
Related Publications
None currently available.
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ADB Provides $451 Million to Strengthen Power Connectivity in Tamil Nadu
ADB has approved a $451 million loan to strengthen power connectivity between the southern and northern parts of the Chennai–Kanyakumari Industrial Corridor in Tamil Nadu, India.
Tenders
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Strategic Study on Tamil Nadu Power Sector | Loan 3850 | 16 Nov 2021 | ERNST AND YOUNG LIMITED, NEW DELHI | 3rd and 6th Floor, Worldmark - 1, Aerocity, New Delhi - 110 037 | Tamil Nadu Transmission Corporation Limited | 12,982,010.54 | 1,284,724.79 |
| Capacity Development | Technical Assistance 9843 | 16 Dec 2020 | KPMG Assurance and Consulting Services LLP(INDIA) | DLF Building No 10, 8th Floor, Tower B, City, Phase 2 Gurgaon, Haryana 122002 In | Tamil Nadu Transmission Corporation Limited | 447,325.00 | — |
| PACKAGE 5(T-21)765KV DC TRANSMISSION LINE-PACKAGE 2 ASSOCIATED WITH 765/400KV VIRUDHUNAGAR STATION | Loan 3850 | 28 Jan 2020 | M/S KEC INTERNATIONAL LIMITED,GURGAON | RPG HOUSE,FIRST FLOOR 463 DR. ANNIE BESANT ROAD,MUMBAI 400030 INDIA | Tamil Nadu Transmission Corporation Limited | 62,227,989.68 | 62,227,989.68 |
| PACKAGE 4(T-20) 765KV DC TRANSMISSION LINE-PACKAGE 1, ASSOCIATED WITH 765/400 KV VIRUDHUNAGAR STATION | Loan 3850 | 28 Jan 2020 | KALPATARU POWER TRANSMISSION LIMITED | 101 PART III GIDC ESTATE,SECTION 28, GANDHINAGAR,GUJARAT 382028 INDIA | Tamil Nadu Transmission Corporation Limited | 62,253,126.88 | 62,253,126.88 |
| PACKAGE 7(T-2096) OTTAPIDARAM 400KV SUBSTATIONS & ASSOCIATED 400KV TRANSMISSION LINES | Loan 3850 | 21 Jan 2020 | LARSEN & TOUBRO LIMITED, CHENNAI 600 089 | P.O. BOX 979 MOUNT POONAMMALLEE ROAD, CHENNAI 600 089 TAMIL NADU INDIA | Tamil Nadu Transmission Corporation Limited | 100,881,413.90 | 100,644,556.40 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Chennai-Kanyakumari Industrial Corridor - Power Sector Investment Project: Procurement Plan | Procurement Plans | Jan 2019 |