Tamil Nadu Electricity board and Bhel today signed an agreement for a joint venture agreement to start a 1600 Mw Thermal power plant at Udangudi in Tuticorin district.
The venture would be named as Udangudi Power Corporation Ltd, in which TNEB, Bhel and other financial institutions, would have equity stakes, an official press release said.
The total cost of the project, coming up on a 760 acre site in Udangudi, would be Rs 8,700 crore, the releasee said.
The first unit of 800 Mw would be commissioned in March 2012 and the second unit in September 2012.
Bhel would be providing the equipment for the project, it said.