The NLC-Tamil Nadu Power, a JV between Neyveli Lignite Corporation and the Tamil Nadu Generation and Distribution Corporation (Tangedco), has inked Rs 937crore loan agreement with a Bank of India led consortium to tie up funds for 1,000 MW power project.
The NLC-Tamil Nadu Power JV was formed for the 2x500 MW power plant in Tuticorin in Tamil Nadu. In the project whose estimated cost of Rs 4,909.54-crore, NLC holds an 89% stake with Tangedco holding the remaining. In 2010, a bank consortium led by Bank of Baroda had lent Rs 2,500 crore to the JV.
The power generated from this project will cater to the states in the Southern Region. Power purchase Agreements (PPA’s) have been signed with Tangedco and other SEBs.
