Perambalur Sugar Mills is planning to set up a 18 MW cogeneration power plant in Eraiyur village in Veppanthattai Taluk in Perambalur district of Tamil Nadu. Land required for the project is 20.61 acres and water requirement is around 580 cu.mets which will be met from Vellar river. Fuel requirement will be 860 tpd of bagasse and 702 tpd of biomass or 526 tpd of coal during off season. The project cost is estimated at Rs.. 1024 million.
The project is likely to go operational in June 2012.