Kudankulam Units 3 & 4 Nuclear Reactors – Demand for 50% Power Share for Tamil Nadu

Introduction

Tamil Nadu is one of the leading states in India in terms of industrial development. As a result, the electricity demand of the state is continuously increasing. In this context, the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) has requested the Central Government to allocate 50% of the electricity generated from Units 3 and 4 of the Kudankulam Nuclear Power Plant located in Tirunelveli district to Tamil Nadu. This is considered an important step to meet the growing electricity demand of the state.

1. Increasing Electricity Demand in Tamil Nadu

Tamil Nadu is a leading state in India in terms of industrial development. About 15.66% of India’s factories are located in Tamil Nadu. Electricity consumption is also increasing in sectors such as domestic usage, agriculture, transportation, and telecommunications. The peak electricity demand of the state is estimated to rise to 22,150 MW during 2024–25. This is around 1,320 MW higher than the previous year’s peak demand of 20,830 MW.

2. Kudankulam Nuclear Power Plant

Location: Tirunelveli District, Tamil Nadu. The plant is operated by Nuclear Power Corporation of India Limited (NPCIL). It is one of the largest nuclear power plants in India.

Unit 1 & 2 – Capacity: 2 × 1000 MW = 2000 MW. Out of this, 1152 MW of electricity has been allocated to Tamil Nadu. The purchase cost of electricity is ₹5.40 per unit.

Unit 3 & 4 – Capacity: 2 × 1000 MW = 2000 MW. These nuclear reactors are expected to start electricity generation soon.

3. Debate on Electricity Pricing

The price of electricity generated from Units 3 & 4 has been fixed at ₹5.91 per unit. However, renewable energy is available at around ₹4 per unit. During peak demand, electricity purchased from private suppliers may cost ₹12–₹17 per unit. Therefore, the Tamil Nadu Electricity Board considers nuclear power relatively expensive. Moreover, this may create additional financial burden on TANGEDCO, which is already facing debt.

4. Power Allocation to States

Electricity generated from nuclear power plants is generally distributed among the host state, neighboring states, and the Central Grid. In this situation, the Government of Tamil Nadu has requested that 50% of the electricity generated from Kudankulam Units 3 & 4 be allocated to the state.

5. Gujarat Example

In the Kakrapar Nuclear Power Plant located in Gujarat, the initial electricity price was fixed at ₹5.60 per unit. However, due to the request from the state government, the price was reduced to ₹4.50 per unit. Similarly, Tamil Nadu has also requested a reduction in electricity price.

6. Future Nuclear Power Projects

Construction work is currently underway for Units 5 & 6 (1000 MW × 2) at the Kudankulam Nuclear Power Plant. Therefore, if the electricity tariff is fixed in advance, it will help the state to plan and develop the necessary transmission infrastructure.

Static Link (Economy / Energy Sector)

Electricity and energy resources play a crucial role in India’s economic development. Topics such as power generation, electricity distribution, and energy security are important in the subjects of Tamil Nadu Development Administration and Indian Economy.

Conclusion / Way Forward

Considering the rapidly increasing electricity demand in Tamil Nadu, it is essential to allocate a larger share of power generated from the Kudankulam Nuclear Power Plant to the state. At the same time, the Central Government and the Department of Atomic Energy should negotiate to provide electricity at a lower cost, taking into account the state’s financial burden. This will help ensure sustainable energy security for Tamil Nadu.