The interim Budget stated that a ‘New Integrated Renewable Energy Policy’ aimed at expanding the state’s clean energy capacity would be announced soon. Finance minister Thangam Thennarasu said the policy would provide a structured roadmap to scale up renewable energy generation and meet the state’s rising power demand through sustainable sources. The Budget earmarked 18,091 crore for the energy department for 2026 -27.“Based on an assessment that Tamil Nadu’s power demand will double in the coming years, new plans are being formulated to generate 100 billion units of renewable green energy,” Thennarasu said. In the first phase, preliminary studies were completed for establishing a 1,000 MW Pumped Storage Hydroelectric Project in the Vellimalai region of Kanyakumari district at an estimated cost of 5,320 crore under the public-private partnership mode, he said. The state is also mulling a 1,000 MWh Battery Energy Storage System (BESS) to strengthen grid stability and optimise renewable integration. In addition, the Budget emphasised environmental protection by allocating 374 crore for riverfront development projects across major cities. As part of the initiative, sewage treatment plants would be established along the banks of Cauvery, Vaigai, Noyyal and Thamirabarani rivers. The riverfront development project would also include creation of commercial zones, street lighting and landscaped parks along the banks. Industry leaders welcomed the move. Ajay Jayaraj, chairman of CII Trichy, said the riverfront development along the Cauvery in Trichy would enhance urban liveability and boost service-sector investments. Trade bodies noted that the projects could address the long-standing lack of recreational spaces in tier-II cities while improving environmental outcomes.Energy & Environment – Key Announcements₹18,091 crore allocated to the Energy Department in the Interim Budget.New Integrated Renewable Energy Policy to be released soon.Target to generate 100 billion units of renewable energy.1,000 MW Pumped Storage Project planned in Vellimalai, Kanyakumari district.Investment: ₹5,320 crore (PPP mode).Proposal to establish 1,000 MWh Battery Energy Storage System (BESS).Riverfront Development₹374 crore allocated for riverfront projects.Projects in Trichy, Madurai, Erode, Coimbatore, Tirunelveli.Rivers covered: Cauvery, Vaigai, Noyyal, Thamirabarani.Includes: Sewage Treatment Plants, commercial zones, street lighting, landscaped parks. MSID:: 128472305 413 |
