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• The government is going full throttle to save the ailing state electricity board. It has announced a financial support of over 3,000 crore to recapitalize the board and 1,500 crore for new generation projects.Experts feel that though the budget does not contain major announcements on the power front, it provides a boost through fresh investments. Finance minister O Paneerselvam said the state's generation capacity is only 30% of the demand which forces the board to depend on supply from other sources.

• Power managers are especially happy about the move to financially support Tamil Nadu Generation and Distribution Company with share capital of 3,069 crore and 1,500 crore for new projects. "Tangedco was planning to raise bonds, but since it had a negative image, they had to go to the state power finance corporation. The investment from the government will give courage to financial institutions to invest in it," said a source.On the generation front, Paneerselvam said the state is facing difficulties in accessing power from outside due to corridor congestion. "Our main thrust is on increasing our own generation capacity by speeding up ongoing projects and starting new projects," he said.

• For instance, the government has decided to implement a 1,600MW thermal power project at Udankudi at 8,000 crore as a proposed joint venture with Bharat Heavy Electricals has not taken off. Besides, government is taking steps to promote renewable energy generation. To promote savings, the government has ordered that compact fluorescent lamps be provided free to 14.62 lakh huts to replace incandescent lamps at a cost of 15 crore which is expected to result in savings of 45MW.It will initiate action to implement an energy conservation building code in commercial buildings based on energy consumption. At 30% energy savings, this has the potential to save 3MW per 10 lakh sq ft. Initiatives are being taken to strengthen transmission infrastructure for wind energy and funds have been sought from the Centre.

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