Web Exclusive | February 2013
NLC joint venture ties up funds for power project in TN
Neyveli Lignite Corporation (NLC)-Tamil Nadu Power has entered into Rs 937-crore loan agreement with a Bank of India-led consortium to part fund a 1,000 mw power project. The agreement was signed on February 18 with the consortium which includes Indian Bank and Central Bank of India.
The NLC-Tamil Nadu Power is a joint venture between Neyveli Lignite Corporation and the Tamil Nadu Generation and Distribution Corporation (Tangedco) for the 2x500 mw power plant in Tuticorin. NLC holds an 89 per cent stake in the project with Tangedco holding the balance 11 per cent.
The Government of India sanctioned the Rs 4,909.54-crore project in May 2008. In 2010, a bank consortium led by Bank of Baroda lent Rs 2,500 crore. The coal linkage is being tied up with Mahanadhi Coalfields (MCL), a subsidiary of Coal India. Land for the project is taken from VOC Port Trust, Tuticorin, on long-term lease basis.
The power generated from this project will cater to the states in the Southern Region. Power purchase agreements have been signed with Tangedco and other SEBs. All the major package contracts are awarded and the project under implementation has reached the physical progress of around 70 per cent.
The first unit is expected to be commissioned in December 2013, followed by another unit in March 2014.