Tamil Nadu’s lignite-based thermal capacity stood at 1,959.16 MW, while coal-fired power capacity was 12,835.49 MW.
| Photo Credit: N. Rajesh

Tamil Nadu’s total installed power capacity was 42,772.20 MW as on March 31 this year, increasing from the previous year’s 39,805.97 MW, according to data from the Central Electricity Authority (CEA).

Of the total capacity this year, coal-fired power capacity was 12,835.49 MW. Of this, 4,320 MW was from the State sector, 5,490.17 MW from the private sector and 3,025.32 MW from the Central sector.

Tamil Nadu’s lignite-based thermal capacity stood at 1,959.16 MW, with a contribution of 1,709.16 MW from the Central sector and 250 MW from the private sector.

Gas-based power plants’ capacity was 1,027.18 MW, with 524.08 MW coming from the State Sector and 503.10 MW from the private sector. The private sector accounted for diesel-based power capacity of 211.70 MW. The State’s overall thermal power capacity stood at 16,033.53 MW as of March 31.

At a recent meeting held by Tamil Nadu Electricity Regulatory Commission (TNERC) regarding the status of ongoing and upcoming Generation Projects in the State, officials from Tamil Nadu Power Generation Corporation Ltd (TNPGCL) stated that the commercial operation date of North Chennai Thermal Project Stage – III (1x800MW) and Udangudi Thermal Power Project Stage – I (2X660 MW) can be achieved in 2025 itself.

As per CEA data, 1,448 MW of nuclear power capacity came from the Central sector.

The State’s renewable energy installed capacity stood at 25,290.67 MW as of March 31. Of this, 11,739.91 MW was from wind energy, 10,153.58 MW was from solar energy, and 2,178.20 MW was from hydro projects. Biomass, and co-generation bagasse power plants, among others, accounted for the rest of the renewable energy capacity.

Gujarat has taken the lead in wind energy capacity for the second time in a row, with a capacity of 12,677.48 MW.

TNPGCL officials have also told TNERC that the commercial date of operation of Kundah Pumped Storage Hydro Electric Power Project (4 x 125 MW) will be achieved in 2025 itself.

TNERC has suggested that TNPGCL arrange for adequate manpower for smooth operation of new projects as per CEA norms.

Choosing between a fixed and floating interest rate for your loan can significantly impact your financial stability and planning. Understanding the benefits and drawbacks of each can help you make the best decision for your financial future.

Which interest rate type offers better stability in the long run?

A fixed interest rate remains constant throughout the loan term, shielding borrowers from market fluctuations. This consistency makes it ideal for long-term financial planning, as repayments remain predictable. On the other hand, floating interest rates vary with market conditions, potentially lowering costs when rates drop but increasing them when rates rise. Fixed rates are particularly beneficial in uncertain financial times, as they reduce exposure to economic volatility.

When does a fixed interest rate work in your favour?

A fixed interest rate is advantageous when market rates are expected to rise. By locking in a steady rate, you protect yourself from future increases. This is especially useful for long-term home loans, providing consistent and predictable repayments that simplify financial planning. Individuals with a secure job and steady income, who are also risk-averse, benefit the most from fixed interest rates, as they eliminate uncertainty in unpredictable economic times.

How do market fluctuations impact your home loan under a floating rate?

Market fluctuations directly affect floating interest rates, causing monthly repayments to increase when rates rise. Conversely, if rates drop, your interest rate decreases, reducing the repayment amount. Floating rates are suitable for borrowers who anticipate rate drops but can be challenging for those seeking financial stability, as repayments can vary based on the economy’s state.

Which option is more beneficial for risk-averse borrowers?

For risk-averse borrowers, fixed interest rates are generally more beneficial. They provide stability and predictability, making it easier to plan finances without worrying about market-induced rate changes.

Can switching between fixed and floating interest rates be an option?

Yes, borrowers can switch between fixed and floating interest rates during their loan term. The Reserve Bank of India’s (RBI) guidelines allow this flexibility for both home and auto loans. However, banks may charge a fee for the switch, and the frequency of changes depends on their policies. This option enables borrowers to choose floating rates when rates are expected to drop or lock in a fixed rate during periods of rising interest rates.

The writer is MD and CEO, ANAROCK Capital.