Neyveli Lignite forms JV with TNEB

Neyveli Lignite Corporation has signed a joint venture (JV) agreement with Tamil Nadu Electricity Board (TNEB) to form NLC Tamil Nadu Power for establishing a Rs 4,500 crore, 1,000 MW, coal-based thermal power project at Tuticorin.

According to a release issued by Neyveli Lignite Corporation to the BSE today, the company and TNEB will have 89:11 stake, respectively, in the joint venture company.

The project is expected to be commissioned in 2010-11, the release added.

"The power plant will consist of two units of 500 MW each. The energy generated will be supplied to Tamil Nadu, Karnataka, Kerala and Pondicherry as per the allocation made by the ministry of power," the release said.