Power Grid Corporation of India is establishing a 110kV substation at Venkata Nagar in Puducherry to cater to the electricity needs of town and certain adjoining areas. The 54-crore project is expected to be completed within two years. The Puducherry Electricity Department, has disbursed 5.5 crore to the Central utility and the balance amount will be met through borrowing from financial institutions. Meanwhile, preliminary talks with Power Finance Corporation and Rural Electrification Corporation for project financing are in progress. The substation will have safety measures with underground cables for drawing and distributing power. The department is also considering setting up a substation at Lawspet and is in the process of acquiring land.