Power generation major, National Thermal Power Corporation is planning to generate around 600 MW of electricity using renewable energy resources in Tamil Nadu.

“The PSU was aiming at generating 1000 MW power under renewable energy mode and a major portion of it will be in Tamil Nadu,” T Sankaralingam, Chairman, NTPC said.

The projects would include wind mills and bio-mass units. It is believed that a blue print would be ready soon for a joint venture with Tamil Nadu Electricity Board (TNEB).

NTPC already has entered into a joint venture with TNEB for setting up Rs 7,500 crore thermal power plant at Ennore, with a projected capacity of 1,500 MW. The project was expected to be commissioned by 2010-2011.

In the hydel segment, NTPC has plans to generate at least 2,000 MW power in Himachal Pradesh before the end of next year. Power sector stocks are looking good for long term investment. Investors can enter these stocks on declines. Stock markets have reacted in recent trading sessions and more downfall is expected over next week.

Anil Manghnani of Modern Shares and Stock Brokers said, "Lot of power stocks still have made new highs or life highs in the last week itself, NTPC just recently touched Rs 290. So still I suggest that the fall would be an opportunity to buy.”

Shares of the company declined Rs 16.1, or 6.3%, to settle at Rs 239.55. The total volume of shares traded was 7,334,218 at the BSE on Friday.