Tamil Nadu Chief Minister C Joseph Vijay on August 31 announced major decisions on power generation, transmission infrastructure, and milk procurement, unveiling projects worth thousands of crores to strengthen the state's infrastructure and support dairy farmers.
The announcements were made under Rule 110 in the Tamil Nadu Assembly, where the chief minister said Tamil Nadu needs world-class power infrastructure to support its expanding economy and meet continuously rising electricity demand.
₹20,800 Crore Tuticorin Thermal Power Project
The state government has proposed a ₹20,800 crore project to establish a 1,600MW supercritical thermal power station in Tuticorin. The proposed facility will consist of two 800MW units and will be developed under the public-private partnership (PPP) model.
The new power station is planned to gradually replace the existing five 210MW coal-fired units at the Tuticorin Thermal Power Station. These older units were commissioned in phases beginning in 1979.
The government said additional investment in power generation has become necessary as Tamil Nadu's electricity demand continues to increase.
"Investments in the power generation sector are essential" to effectively manage the continuously increasing power load and meet growing demand, the government said.
Tamil Nadu has also been rapidly expanding its renewable energy capacity, particularly through wind and solar power. However, the government noted that renewable generation is not uniformly available throughout the day.
Battery storage capacity is being developed to store surplus renewable electricity and make it available during peak-demand periods.
Until such storage systems are sufficiently developed, thermal power generation will continue to play an important role in maintaining an uninterrupted electricity supply during periods of high demand.
₹33,066 Crore Transmission Network Overhaul
Alongside the new generation project, the government announced a ₹33,066 crore plan to overhaul Tamil Nadu's power transmission network.
The proposed works will include:
196 new substations
15,000km of new transmission lines
Strengthening of existing transmission infrastructure
Improved power evacuation from generating stations
Better connectivity to major consumption centres, including Chennai
The transmission upgrades are intended to ensure that electricity generated across the state can be efficiently moved to areas with high demand.
For Chennai's distribution network, the government has announced additional works worth ₹1,762 crore. These projects will include 36 new 33/11kV substations, new distribution transformers and the replacement of ageing cables, conductors, pillar boxes and circuit breakers.
Chief Minister Vijay said that a comprehensive power infrastructure equipped with advanced technology is essential for Tamil Nadu's growing economy and increasing electricity consumption.
Aavin Milk Procurement Price Increased by ₹3
The chief minister also announced another ₹3 per litre increase in the milk procurement price paid by Aavin, taking the total increase announced this month to ₹6 per litre.
Following the latest revision, the procurement price for cow milk will rise from ₹38 to ₹44 per litre, while the price paid for buffalo milk will increase from ₹47 to ₹53 per litre.
The retail price of Aavin milk will remain unchanged, so the additional procurement cost will not be passed on to consumers through a retail price increase.
Vijay attributed the decision to the sustained rise in the cost of fodder, mineral mixtures and other cattle feed.
3.16 Lakh Milk Producers to Benefit
The procurement price revision is expected to benefit around 3.16 lakh milk producers associated with approximately 8,800 milk cooperative societies across Tamil Nadu.
However, the cumulative ₹6 per litre increase will raise Aavin's expenditure by around ₹60 crore per month, or approximately ₹720 crore annually.
The state government has said it will compensate Aavin for the additional expenditure, ensuring that the higher procurement cost does not result in a corresponding increase in the retail price of milk.
The announcement comes amid protests by a section of dairy farmers who had opposed the earlier ₹3 per litre increase, arguing that it was insufficient to offset rising input costs. Farmers in several parts of Tamil Nadu had staged protests and threatened to stop milk supplies.
After the protests, the state government held discussions with dairy farmer representatives before announcing the additional increase.
The latest revision also fulfils an electoral promise made by the ruling TVK, whose manifesto had assured that Aavin's milk procurement price would be increased to ₹44 per litre.
The government's latest announcements therefore combine long-term investments in electricity generation and transmission with measures to support the state's dairy producers, while keeping Aavin's retail milk prices unchanged.
