The Union Cabinet on Thursday cleared the proposal for setting up a Rs.5,907-crore lignite-based thermal power project by Neyveli Lignite Corporation (NLC) in Tamil Nadu.
“The Cabinet Committee on Infrastructure has approved the proposal for installing 1,000 MW lignite-based thermal power project in Neyveli,” an official statement said.
Consisting of two units of 500 MW each, the power generated from the new project will cater to demand of the states in the southern part of the country. NLC is planning to set up the project in Cuddalore district of the state.
The project had also come up for discussion in the Public Investment Board in November last year.
The foreign exchange component of the power plant is Rs.969.81 crore. NLC is currently operating three thermal power stations at Neyveli and one at Barsingsar in Rajasthan with a total installed capacity of 2,740 MW.
