NLC investing over Rs13,270 crore in TN to add 3000 MW power

Neyveli Lignite Corporation Ltd (NLC) has taken up expansion in Tamil Nadu to add 3000 MW of power, involving investment of around Rs13,270 crore.

The projects include the 2x500 MW TPS-II expansion at Neyveli, involving investment of a Rs2,453.57 crore, a 2x500 MW coal-based power plant at Tuticorin by NTPL involving investment of 4,909.54 crore, and another 2x500 MW thermal power project, involving investments to the tune of Rs5,907.11 crore, at New Neyveli Thermal Power Station, which is under implementation.

NLC said it has taken up the thermal power projects for further expansion in Tamil Nadu after these were approved by the government of India.

Lignite for the TPS-ll capacity expansion will be supplied from expansion of NLC's second mine. The new plant based on fluidised bed combustion technology, will be more environment-friendly, causing less emission of toxic air pollutants apart from improved process efficiency, it said.

The coal-based thermal power plant at Tuticorin is a joint venture between NLC and the Tamil Nadu Electricity Board (TNEB) where NLC's share of equity is around Rs1,311 crore, which will be met through internal accruals, over a period of time.

The joint venture, NLC Tamil Nadu Power Limited, has tied up with Rural Electrification Corporation Limited for its entire debt requirement of Rs3,437 crore.