Chennai: NLC-Tamil Nadu Power Ltd has entered into an Rs 937-crore loan agreement with a Bank of India-led consortium to part fund a 1,000 MW power project, according to a press release from Neyveli Lignite.
The agreement was signed today 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 Ltd (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 Ltd (MCL), a subsidiary of Coal India Ltd.
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.
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