NLC to invest Rs 4,500 cr to set up a 1,000 MW plant in Tuticorin

State-run Neyveli Lignite Corporation Ltd on Tuesday said, it plans to invest Rs 4,500 crore to set up a 1,000 MW power plant in Tuticorin, Tamil Nadu.

"We have received approval from our Board to set up a lignite-based power plant. In a week's time, we will send the proposal to the Union Power Ministry for clearance," NLC Chairman and Managing Director S Jayaraman told PTI.

Jayaraman said the company would finance 30 per cent of the project cost from its internal accruals, while the rest would be borrowed from the domestic market.

The company hopes to receive all the necessary approvals in the next six months.

"We have started working on the tendering process," he said, adding the company would place orders for machineries after getting Government clearance.

NLC has already signed an MoU with Tuticorin Port Trust for the project that would come up on a 200 acres of land.

The company would feed the plant with its captive lignite mines. Lignite is known to have far lower ash content than coal and, so, becomes a clean option for thermal energy.

The project has also received clearance from Tamil Nadu Pollution Control Board, he added.

"The project will be completed in 42 months from the zero date of construction work," he added.

NLC currently generates 2,490 MW of power.

Source: Businness