Tamil Nadu receives ₹785.21 crore PSDF support for substation modernisation and grid upgrades

The Union government has granted 10 power projects totalling ₹785.21 crore from the power system development fund (PSDF) in Tamil Nadu, according to minister of state for power Shripad Naik. The funding is directed at renovating and modernising substations and supporting technical and IT infrastructure needs.

The scope also includes installation of bus reactors, communications and data acquisition systems, and battery storage system (BESS) deployment. Naik said the state has been sanctioned under the revamped distribution sector scheme (RDSS) for smart metering and distribution infrastructure/loss-reduction, and that renewable energy integration plans involve inter-state transmission system (ISTS) projects currently in active implementation.

He added that Tamil Nadu’s peak electricity demand has been met without deficit over the last five financial years and the current financial year (up to June 2026).