Cabinet approves Tuticorin thermal plant

New Delhi, Apr 24 (UNI) The government today approved Neyveli Lignite Corporation's (NLC) 2X500 MW coal-based thermal power project at Tuticorin, which entails an investment of Rs 4,909.54 crore.

The project, to be built in a joint venture with Tamil Nadu Electricity Board (TNEB), at an estimated cost of Rs 4,909.54 crore on April, 2007 Price Level (PL) with Interest During Construction (IDC) of Rs 597.33 crore and Foreign Exchange (FE) component of Rs 716.06 crore, Minister of Information and Broadcasting Priyaranjan Das Munshi told reporters here.

The Cabinet has also approved the formation of the joint venture company of NLC with TNEB by the name of 'NLC-Tamil Nadu Power Ltd' as per the Memorandum of Articles and Articles of Association for setting up of a 1,000 MW coal-based thermal power project.

The project, Tuticorin Thermal Power Project, will have a share holding of 89 per cent of the equity capital by NLC and the rest by TNEB.

The power generated from Tuticorin Power Project (2X500 MW) units would cater to the demand of the southern states of the country.

UNI RT SR GC2127