Work begins at NLC Tuticorin power project

CHENNAI: Work has commenced at the 1000 mw ( 2 x 500 mw) coal fired thermal project of NLC Tamil Nadu power project (NTPL) at Tuticorin. Foundation stone was laid on Saturday for the project estimated to cost Rs 4910 crore with the entire debt of Rs 3437 crore sanctioned by Rural Electrification corporation ( REC).

NTPL is a joint venture of Neyveli Lignite corporation ( 89% stake) and Tamil Nadu Electricity board ( 11% stake). The debt: equity ratio will be 70: 30. This will be NLC���s first coal fired thermal plant and also its first JV project. NLC has obtained the consent from TN pollution control board and also clearance from the Ministry of environment and forests.

Tuticorin Port trust has allotted required land for development of this project, on long term lease. Sea water will be drawn for industrial usage and potable water requirement will be met from envisaged desalination plant.

Ministry of coal has issued letter of assurance for supplying coal from Thaltcher coalfields of Mahanadhi Coalfields Ltd., Orissa. Power Grid Corporation of India has agreed to arrange for evacuation of power from this project through 400 KV grid.

Bhel has emerged as EPC contractor to supply and erect major equipments. The first unit is to be commissioned by March 2012 and the second unit by August 2012.

Power produced from this plant will be shared among the southern states (but for Andra Pradesh) and Union Territory of Pudhucherry and the Share of Tamil Nadu being 43%.