Neyveli Lignite Puts $2.6 Billion into 3,000 Megawatts of Additional Power

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Written by Richard Finlayson, Senior International Editor for Industrial Info resources (Sugar Land, Texas)--An additional 3,000 megawatts (MW) of power is being targeted in Tamil Nadu by India's Neyveli Lignite Corporation Limited (NLC), with an investment of $2.6 billion.

Projects in the new portfolio include the 1,000-MW TPS-11 expansion at Neyveli, with an investment of $480 million; a 1,000-MW, coal-fired plant at Tuticorin, with an investment of $962 million; and a similar, 1,000 MW, thermal power project at New Neyveli, which is now being built with an investment of $1.16 billion.

The central government approved the thermal power project expansion in Tamil Nadu before NLC committed to a schedule.

NLC will expand its second mine to supply lignite to TPS-11, which will use circulating fluidized bed technology resulting in reduced emissions from improved process efficiency.

The Tuticorin coal-fired plant is a joint venture between NLC and the Tamil Nadu Electricity Board (TNEB). NLC's equity share in the project is $257 million, which the company will meet through internal accruals over a period.

NLC Tamil Nadu Power Limited, a joint venture, has joined with the Rural Electrification Corporation Limited to cover the total debt requirement of $674 million for the Tuticorin project.

For related information see January 10, 2011 -- BHEL to Commission Lignite-Fired CFBC Boilers.

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