NLC to set up new 1000 MW lignite-based power project in TN
19 May 2011
The government has approved a proposal by Neyveli Lignite Corporation (NLC) for setting up a Rs5,907-crore lignite-based thermal power project in Tamil Nadu.
The Cabinet Committee on Infrastructure today approved the proposal of Neyveli Lignite Corporation Ltd for setting up a 1000 MW lignite-based thermal power project at Neyveli, in Cuddalore district of Tamilnadu.
The project, consisting of two units of 500 MW each, is estimated to cost around Rs5,907.11 crore, including interest cost of Rs559.03 crore and foreign exchange component of Rs969.81 crore ($217.009 million), on October 2010 price level.
Power generated from the 2x500 MW units will be used to cater to the demand of southern states.
NLC currently operates three thermal power stations at Neyveli and one at Barsingsar in Rajasthan with a total installed capacity of 2,740 MW.
NLC along with the Tamil Nadu Electricity Board is also planning to set up a coal-based thermal power plant at Tuticorin at a cost of Rs4,910 crore.
NLC is an ambitious public sector undertaking which is trying to accelerate expansion plans and the Mini Ratna Category I status would enable the company to accelerate its expansion activities.