The Indian Government has finally sanctioned its approval for Neyveli Lignite Corporation’s 2x500 MW coal-based thermal power project at Tuticorin in joint venture with Tamil Nadu Electricity Board.

The project, Tuticorin Thermal Power Project, will have a share holding of 89 % of the equity capital by NLC and the rest by TNEB. The estimated cost of the project is Rs 4,909.54 crore based on April 2007 price level.

The Cabinet has also approved the formation of the joint venture company of NLC with TNEB by the name of 'NLC-Tamil Nadu Power Ltd' as per the Memorandum of Articles and Articles of Association for setting up of a 1,000 MW coal-based thermal power project.

Neyveli Lignite Corporation Limited engages in the mining and production of lignite; and generation of thermal power in India. It owns three mines, Mine I, Mine IA, and Mine II, as well as operates two thermal power stations comprising Neyveli Thermal Power Station-I and Thermal power station-II.

Neyveli Lignite also offers consultancy services to the mining and power sector.