The Tamil Nadu Electricity Board (TNEB) and Neyveli Lignite Corporation (NLC) have signed a memorandum of understanding (MoU) for the Rs 4000-crore 1000 mw coal-based thermal power project to be set up at Tuticorin as a joint venture.
The deal was signed by Mr S Jayaraman, chairman and managing director of NLC and TNEB chairman K Gnanadesikan, in the presence of Chief Minister J Jayalalithaa and Union minister for coal Karia Munda here on Thursday. NLC and TNEB will have an equity ratio of 89:11 in the project which is expected to be commissioned in 2007-08.
The entire power to be generated by this project would be available to the Tamil Nadu grid and this would speed up the industrialisation of the southern districts.
TNEB had signed in July 2002 an agreement with the National Thermal Power Corproation (NTPC) for setting up a 1000 mw project in north Chennai at an investment of Rs 5000 crore.