The chief minister did not give details but it is learnt that Tamil Nadu Industrial Development Corporation Ltd (Tidco) and IL & FS will fund this project for cogeneration by the sugar cooperatives sector.

Any excess power generated via this project will be routed to the state grid. Both Tidco and IL & FS are working on details of financing the project, sources said.

Inaugurating the conference on Energy Efficiency and Management, the chief minister observed that improving energy efficiency and renewable energy are the two most useful ways of reducing the gap between supply and demand.

The working group appointed by GoTN hasprojected annual growth of 10 per cent in demand for power and based on this peak demand in the state by end 2006-2007 will be about 13,000 mw.

"This means we have to increase the existing capacity two-fold by 2007," he noted and pointed out that projects totalling over 3000 MW are now under implementation.

TN is also engaged in the process of selecting a suitable promoter through international competitive bidding for setting up an LNG terminal at Ennore with a 2000 mw power plant. This is expected to be commissioned by 2004. Besides, other independent power projects are expected to be commissioned during the Ninth and Tenth Plan periods. All these projects will add to the total capacity by 6000 mw.

The state is working to bring down transmission and distribution losses from 17.3 per cent now to 15 per cent by end of the Ninth Plan period. TNEB expects to complete renovation programme of the Ennore Power station by 1999-2000 and plant load factor of thermal power stations now at 67.96 pr cent isexpected to reach 75 per cent. The chief minister admitted that of the 20 state-promoted liquid fuel power projects only seven projects totalling 800 mw have got fuel linkages and the state government is trying to get fuel linkages for the remaining 13 projects also.

Tamil Nadu is one of the few states in the country to have made energy audit mandatory for all H.T. industrial and commercial establishments. This is one more step towards the goal of energy conservation and TNEB is monitoring this. Besides TNEB and CII have jointly taken initiative to promote the energy audit scheme.

Health and electricity minister Arcot N. Veeraswami said present total power generation capacity in the state is 6716 mw but actual production is around 5,000 mw only. "The demand for power always outstrips the availability," he said.Although the annual increase in consumption is about 10 per cent, Tamil Nadu is better off in power supply among southern states.

The minister said a TNEB estimate has indicated that the statewould require to generate 8,060 mw by end of the Ninth Plan and 12981 mw by end of Tenth Plan. This calls for additional generation to be added every year and the state has decided to develop many small hydel projects during these plan periods. Also new thermal stations to be developed in this period will generate a further 1500 MW.Veeraswami said Tidco has allotted to private sector short gestation projects for 2772 mw. Before end of the Ninth Plan the state expects to get 2345 MW commissioned by the private sector and by end of Tenth Plan a further 4520 MW of power will be added.