The Tamil Nadu government has proposed an allocation of Rs 180.91 billion for the energy department in its Interim Budget 2026-27.
The state also planned to generate 100 billion units of renewable green energy and has completed a preliminary study for development of a 1,000 MW pumped storage hydropower project in the Vellimalai area of Kanyakumari district with an estimated investment of Rs 53.20 billion through the public-private partnership route. The state has finalised tenders for installation of 1,000 MWh of battery energy storage systems to provide round-the-clock green power and has indicated that a new integrated renewable energy policy will be issued to accelerate capacity addition. The budget also noted that the union government has mandated provision of Rs 162.90 billion as loss funding to Tamil Nadu Power Distribution Corporation Limited.