The Tamil Nadu government has announced a series of measures to strengthen the state’s power sector in the revised 2026-27 budget. One of the measures is to expedite the Udangudi Stage-I and Ennore SEZ thermal power station projects, which together will add 2,640 MW of generation capacity. The ETPS Expansion Project, estimated at Rs 80 billion, will also be expedited through the public-private partnership mode. In addition, the Vellimalai pumped storage hydroelectric project, valued at Rs 50.5 billion, will be fast-tracked.
Further, the government will introduce a battery energy storage system promotion policy to attract private investment. A rooftop solar subsidy scheme, in convergence with the Pradhan Mantri Surya Ghar Muft Bijli Yojana, will also be launched, offering subsidies of up to Rs 0.1 million for domestic consumers. Additionally, to strengthen the transmission network, the government will implement the 765 kV Coimbatore-Ariyalur transmission line project, and expedite the Phase-II Green Energy Corridor Project and the Virudhunagar-Coimbatore 765 kV transmission project. Moreover, steps will be taken to secure financial assistance for the Rs 68.84 billion Phase-III Green Energy Corridor Project, designed to evacuate 11,760 MW of renewable energy.