fbpx 51308-001: Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project | Asian Development Bank

India: Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project

Sovereign (Public) Project | 51308-001 Status: Proposed

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 Name Chennai-Kanyakumari Industrial Corridor: Power Sector Investment Project
Project Number 51308-001
Country India
Project Status Proposed
Project Type / Modality of Assistance Loan
Technical Assistance
Source of Funding / Amount
Loan: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project
Ordinary capital resources US$ 451.00 million
TA: Chennai-Kanyakumari Industrial Corridor Power Sector Investment Project
Technical Assistance Special Fund US$ 400,000.00
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector

Energy / Electricity transmission and distribution

Gender Equity and Mainstreaming 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 Madurai Thoothukudi 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.

Project Rationale and Linkage to Country/Regional Strategy

The Madurai Thoothukudi 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 Chennai Trichy 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 Madurai Thoothukudi area in the southeast region of Tamil Nadu and demand centers in Chennai Madurai 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 Madurai Thoothukudi area also require connectivity at 230 kV level to meet the expected increase in electricity demand.

Impact Economic growth and industrial development in Tamil Nadu enhanced.
Outcome Power supply to industrial centers in CKIC increased to meet the expected growth in demand.
Outputs

Electricity transmission link between the electricity generation hub in southern Tamil Nadu and load centers in western and northern parts of the state established.

Pooling substation to receive electricity generated from power plants in Thoothukudi district established.

Geographical Location Tamil Nadu
Safeguard Categories
Environment B
Involuntary Resettlement B
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
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.
Responsible ADB Officer Pradeep Perera
Responsible ADB Department South Asia Department
Responsible ADB Division Energy Division, SARD
Executing Agencies
Department of Energy
Government of Uttar Pradesh
Saclivalaya, Lucknow 226 001
India
Tamil Nadu Electricity Board
7th Floor, N.P.K.R.R. Maaligai
Electricity Avenue, 800 ANNNA SALAI,
Chennai - 600 002 INDIA
Timetable
Concept Clearance 12 Jul 2018
Fact Finding 21 Jan 2019 to 28 Jan 2019
MRM 30 May 2019
Approval -
Last Review Mission -
Last PDS Update 12 Jul 2018

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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Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

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Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.