JICA keen to fund electricity transmission infrastructure in Tamil Nadu
13 February 2012
The Japan International Cooperation Agency (JICA) is keen to fund the transmission infrastructure work of the cash-strapped Tamil Nadu Electricity Board (TNEB). The state-government power utility also plans to rope in the agency for its generation projects, as well.
The agency has assured Rs3,500 crore in funding, with the state and the board having agreed to it but an approval from the economic affairs department was awaited.
According to an unnamed TNEB official quoted by The Times of India, the centre's approval for getting funds from foreign agencies was required.
According to officials, long-term loans from international agencies could be availed more easily than short-term ones by local financial institutions.
TNEB has lined up a number of projects to enhance power generation by an additional 23,000 MW but not enough sub-stations or infrastructure to distribute was available to distribute the generated electricity.
The state, at present has 1,350 sub-stations and in the next five years, it would need nearly 3,000 sub-stations. According to the official, it required a lot of money to construct a sub-station and some funding was therefore needed.