Cabinet Committee approved Neyveli Lignite Corporation's Thermal Power Project in TN

The Cabinet Committee on Infrastructure approved Neyveli Lignite Corporation's (NLC) Rs 5907.11-crore lignite-based thermal power project in Tamil Nadu on 19 May 2011. The proposal for the project included installation of 1,000 MW lignite based thermal power project at Neyveli. The power generated from the new thermal power project (2x500MW units) will cater to the demand of the southern States.

The project involves setting up of two units of 500 MW each at Neyveli in Tamil Nadu. The estimated project cost of Rs 5907.11 crore at October-2010 prices includes interest during construction of Rs 559.03 crore and a foreign exchange component of Rs 969.81 crore ($217.009 million). The foreign exchange component of the power plant is R969.81 crore.

 NLC which is currently operating three thermal power stations at Neyveli and one at Barsingsar in Rajasthan with a total installed capacity of 2,740 mega watts is also planning to set up a 2x500 MW project in Cuddalore district of the state.

NLC and Tamil Nadu Electricity Board decided to set up a coal-based thermal power plant at Tuticorin at a cost of Rs 4910 crore.

The Cabinet Committee on Infrastructure had approved in October 2010 the proposal for installing 1000 MW lignite based Thermal Power Project at Neyveli consisting two units of 500 MW each at an estimated cost of Rs.5907.11 crore. The price was fixed at Interest During Construction (IDC) of Rs.559.03 crore and Foreign Exchange (FE) component of Rs.969.81 crore equivalent to US $ 217.009 million.