As a major initiative to strengthen the State’s transmission network, the Coimbatore-Ariyalur 765 KV Transmission Line Project will be implemented through the public private partnership (PPP) mode at an estimated cost of Rs.4,000 crore, he said while presenting TVK government’s maiden budget for 2026-2027.
Ultra-high voltage power transmission capacity in Chennai and its surrounding areas will also be strengthened, at an estimated cost of Rs.1,390 crore, the Minister said.
The Phase-II Green Energy Corridor Project, valued at Rs.1,187 crore and crucial to evacuating renewable energy from southern Tamil Nadu, will be expedited alongside the Virudhunagar-Coimbatore 765 KV Transmission Project, valued at Rs.1,640 crore, as per the budget speech.
The Government will also take steps to secure the financial assistance required for the third phase of the Green Energy Corridor project, valued at Rs.6,884 crore, capable of handling 11,760 MW of renewable energy, Wilson said.
The Government will construct 178 new sub-stations at an investment of Rs.1,543 crore to strengthen the power distribution infrastructure, he said.
40,000 old transformers will be replaced in a phased manner at a cost of Rs.2,000 crore, the Minister said.
To encourage the adoption of electric vehicles, 20,000 public EV charging stations will be established over the next five years under the PPP mode, with an allocation of Rs.50 crore in the current financial year, he added.
Government will extend subsidy to Resident Welfare Associations (RWAs) for installing electric vehicle charging stations in residential complexes, with an allocation of Rs.5 crore for this purpose, as per the budget speech.
The power sector will play a vital role in achieving the Government’s vision of a 1.5 trillion dollar economy by the year 2036, Wilson noted.
Government is committed to expediting the Udangudi Stage-I and Ennore SEZ Thermal Power Projects, which will together add 2,640 MW to Tamil Nadu’s power generation capacity, he said.
The ETPS Expansion Project, valued at approximately Rs.8,000 crore, is being undertaken through the Public-Private Partnership (PPP) mode. The Vellimalai Pumped Storage Hydroelectric Project, valued at Rs.5,050 crore, will also be expedited, Wilson said.
Recognising the importance of Battery Energy Storage Systems (BESS) in managing peak power demand, this Government will issue a New BESS Promotion Policy to facilitate private investment in the sector and transform Tamil Nadu into India’s ‘BESS Hub’, he added.
A new ‘Rooftop Solar Subsidy Scheme’ will be introduced in convergence with the ‘Pradhan Mantri Surya Ghar Muft Bijli Yojana’, the Minister said.
Under the scheme, a subsidy of up to Rs.1 lakh will be provided to domestic consumers for installing solar panels, significantly reducing their electricity bills and supporting the transition to renewable energy, he said.
A system for installing smart meters will also be introduced for all consumers in Chennai city, as well as for 50 lakh industrial and commercial consumers across other parts of the State, Wilson said.
An amount of Rs.1,545 crore is allocated in the Revised Budget Estimates to increase the free electricity entitlement from 100 units to 200 units, for domestic consumers with bi-monthly consumption of up to 500 units, as per the announcement made by the Chief Minister.
For the subsidy provided to electricity consumers, ranging from domestic households to agricultural farmers, Rs.18,860 crore is allocated in the revised budget.
An amount of Rs.5,000 crore is being allocated as compensation to the Tamil Nadu Generation and Distribution Corporation.
Overall, an allocation of Rs.15,828 crore has been made for the Energy Department.