Lok Sabha Question No. 178 (STARRED), answered on 2025-07-31
Subject: Power Generation Capacity in Tamil Nadu
Ministry: POWER
Asked by: Thiru D M Kathir Anand

THE MINISTER OF POWER

(SHRI MANOHAR LAL)

(a) to (c) : A Statement is laid on the Table of the House.

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## GOVERNMENT OF INDIA MINISTRY OF POWER

LOK SABHA STARRED QUESTION NO.178 ANSWERED ON 31.07.2025

POWER GENERATION CAPACITY IN TAMIL NADU

*178.  THIRU D M KATHIR ANAND:

Will the Minister of POWER be pleased to state:

(a) whether the Union Government has taken steps to increase the power generation capacity  and  load  flow  through  the  Southern  Grid  in  Tamil  Nadu  to  match  increasing power demand in the State during the next three years and if so, the details thereof;

(b) the present status of power generation capacity in Tamil Nadu and the expected increase in its power generation capacity during the next three years; and

(c) whether the Government has taken adequate steps to encourage and accommodate new private players in power generation especially in Tamil Nadu and if so, the details thereof?

A N S W E R

## STATEMENT

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) IN RESPECT OF LOK SABHA  STARRED  QUESTION  NO.178  FOR  REPLY  ON  31.07.2025  REGARDING POWER GENERATION CAPACITY IN TAMIL NADU  ASKED BY THIRU D M KATHIR ANAND.

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(a) & (b) : The installed generation capacity in the State of Tamil Nadu is 43,107 MW. The following measures have been taken to increase the power generation capacity in the State in next three years:

- (i) 3,440  MW  of  thermal  capacity  and  500  MW  of  pumped  storage capacity in the state sector are scheduled to be commissioned in the next three years.
- (ii) Tamil  Nadu  will  get  share  of  about  2,151.8  MW  from  the  Nuclear projects scheduled to be commissioned in the next three years.
- (iii) About 6,000 MW  of renewable capacity is scheduled to be commissioned in the state in the next three years.
- (iv)      Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, Viability Gap Funding (VGF)  Scheme for Offshore Wind Energy Projects have been launched.

Tamil Nadu is well connected with the National Grid through high capacity transmission corridors comprising of 765 kV and 400 kV Extra High Voltage (EHV) AC lines  as  well  as  +/-800  kV  High  Voltage  (HV)  DC  System  which  facilitates smooth  transfer  of  power  through  Inter  State  Transmission  System  (ISTS) network between Tamil Nadu and other Southern Region States/ National Grid.

Various Inter-Regional links viz. Narendra (SR) - Pune (WR) 765 kV D/c line, Angul (ER) - Srikakulam (SR) 765 kV 2 nd  D/c line and Bidar (SR) - Parli (WR) 765kV D/c line are in different stages of implementation. These Inter-Regional links shall facilitate in meeting the import requirements of Southern Region including Tamil Nadu during peak demand season of Southern region. The links will also facilitate export of surplus power from Southern Region.

(c):  As  per  the  Electricity  Act  2003,  generation  of  electricity  is  a  delicensed activity.

The Government of India has taken several steps to encourage investment by the private players in the power generation in the country, including Tamil Nadu, particularly in renewable sector. These, inter-alia, include the following:

- (i) Resource Adequacy Plan indicating the capacity to be tied up by DISCOMs has been prepared for the next ten years. This gives visibility to the generation developers  including  private  players  to  set  up  generation  capacity  in  the country including Tamil Nadu.
- (ii) Ministry of New & Renewable Energy (MNRE) has issued Bidding Trajectory for issuance of RE power procurement bids of 50 GW/annum by Renewable Energy Implementing Agencies (REIAs) from FY 2023-24 to FY 2027-28.
- (iii) Inter State Transmission System (ISTS) charges have been waived for interstate sale of solar and wind power for projects to be commissioned by 30th June 2025, for Green Hydrogen Projects till December 2030 and for offshore wind projects till December 2032.
- (iv) In  order  to  facilitate  the  integration  of  large  scale  renewable  generation capacity  addition  in  the  country,  the  Transmission  plan  i.e.  "Transmission System for Integration of over 500 GW RE Capacity by 2030" has been prepared by CEA. This includes the transmission system for evacuation of 8 GW of RE (including 5 GW of off shore wind) in Tamil Nadu, out of which, for 1.5 GW RE capacity,  transmission  system  (ISTS)  is  already  commissioned;  for  1  GW (including 0.5 GW offshore wind) RE capacity, transmission system (ISTS) is under implementation and transmission system (ISTS) for evacuation of 5.0 GW RE capacity has been identified and would be taken up for implementation in a phased manner commensurate with the RE capacity addition.
- (v) Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
- (vi) Project  Development  Cell  for  attracting  and  facilitating  investments  in renewable energy sector has been set up in Ministry of New & Renewable Energy.
- (vii) Scheme for setting up of Solar parks and Ultra Mega Solar power projects is being  implemented  to  provide  land  and  transmission  to  RE  developers  for installation of RE projects at large scale.
- (viii) "Strategy  for  Establishments  of  Offshore  Wind  Energy  Projects"  has  been issued indicating a bidding trajectory of 37 GW by 2030 and various business models for project development.

…….3.

- (ix) Laying of new Transmission lines and creating new sub-station capacity has been  funded  under  the  Green  Energy  Corridor  Scheme  for  evacuation  of renewable power.
- (x) Green  Term  Ahead  Market  (GTAM)  has  been  launched  to  facilitate  sale  of Renewable Energy through exchanges.
- (xi) The government has approved the Viability Gap Funding (VGF) scheme at a total outlay of Rs. 7,453 Cr for the implementation of Offshore Wind Energy Projects, for the installation of 1 GW of offshore wind energy projects, out of which 500 MW is to be installed off the coast of Tamil Nadu.

Further,  the  Government  of  Tamil  Nadu  has  taken  following  steps  to encourage participation of private sector in power generation in the state:

(i)  Policies  for  establishment  of  Pumped  Storage  Projects  and  Small  Hydel Projects (from 100 KW to 10 MW) to encourage participation of private developers have been issued by the Government of Tamil Nadu.

(ii)  Pumped  Storage  Projects  totaling  to  13,500  MW  have  been  envisaged  in various locations of Tamil Nadu and are to be established under Public Private Partnership Mode.

(iii) For development of self-identified Pumped Storage Projects and small Hydro Projects, developers have been identified by calling Expression of Interest and is in the process of allotment.

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