Neyveli Lignite, TNEB ink pact

To implement coal-based thermal power project at Tuticorin

Neyveli Lignite Corporation Limited has announced that the company and Tamil Nadu Electricity Board (TNEB) have jointly incorporated a company christened "NLC Tamil Nadu Power Limited" to implement a 1000 mw coal-based thermal power project at Tuticorin.

The joint venture project will involve an estimated investment of Rs 4,500 crore. The project will be funded through equity and loans. Neyveli Lignite Corporation and TNEB will contribute to the equity in the ratio of 89:11.

The project will be located adjacent to the existing Tuticorin Thermal Power Station of TNEB. The required land is proposed to be allotted by Tuticorin Port Trust to the company on long term lease basis.

The project envisages use of about five million tonnes of coal per year from Talcher Coalfields of Orissa and has a provision to use imported coal for blending.

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

However, Tamil Nadu will be the major beneficiary. The project is anticipated to be commissioned in the next five to six years during 2010-11.

The project proposal will be shortly submitted to the Government of India for approval.