The PowerGrid and Ceylon Electricity Board would be looking at laying the cable which will be laid on the seabed just as telecom and internet cables run across ocean beds. The cable is expected to be laid under the Gulf of Mannar between Talaimannar on the left flank of the Mannar islands in Sri Lanka and Rameshwaram in Tamil Nadu.

The underwater cable, on the Sri Lankan side, would be connected through an overhead line to the country’s Anuradhapura network and on the Indian side the cable would be linked through an overhead transmission line to Madurai southern grid.

The Saarc group intends to establish a South Asian energy grid, which would be firmed up by this interlink, whereas India already has a power link with Bhutan. Both the countries can manage peak demand, when the hydel capacities run low, through this link. The usage of expensive fuels can be reduced through the link and cheaper power can be imported from India.

PowerGrid, the state-owned transmission utility, is the implementing agency for the subsea link from India. PowerGrid has prepared an initial report and estimated the cost of the project to be INR22.92 billion, which after receiving the investment approvals would be finished within 42 months. The report says that in a short span there would be around 500MW of power supply between the countries, which can be increased to 1,000MW by 2015-16.

Presently, India with a peak demand of 107,000MW, has a power shortage of 16%. By 2012, the Indian government plans to add 78,500MW capacity.

Presently there are proposals online, which suggest that a surplus of 6,000MW would be generated during peak hours and 12,300MW during lean periods.