The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi, has approved the creation of an intra-state transmission system in Tamil Nadu. The project will mainly support renewable energy, mostly wind power projects in the state, and will cost Rs 1,593 crore.

A 400 kV grid sub-station will be built at Thannampatty, besides augmentation of various 230 kV grid sub-stations and associated transmission systems in the state. The project is proposed to be completed within a period of three years.

The costs for the project will be met through a KfW loan that will account for 40% of the total cost, a NCEF grant for another 40% and the remaining 20% will be contributed by the state.

Tamil Nadu already has a large number of wind projects that are already operational or under installation.

The existing power transmission infrastructure is insufficient to cater to the existing and new renewable energy installations.