NLC India Commissions 130 MW Solar Project in Tamil Nadu’s Neyveli

The state-owned Neyvveli Lignite Corporation India Limited (NLCIL) has successfully commissioned 130 MW solar project in Tamil Nadu.

Speaking on the achievement, Coal Secretary Susheel Kumar said, “As part of fulfilling its commitment towards the green initiatives, the NLCIL has now crossed a significant milestone by commissioning its prestigious 130 MW solar power project on January 1, 2018.”

The project, spread over four locations in Neyveli, has been implemented in two blocks of 65 MW, each connected with 33/110 kV pooling substation. The overall cost of the project is ₹7.53 billion (~$118 million) which includes Viability Gap Funding (VGF) of ₹975 million (~$15 million) per annum under the Ministry of New and Renewable Energy’s (MNRE) Central Public Service Unit (CPSU) program. The project is expected to reduce carbon dioxide emissions by 216,000 tons.

While Bharat Heavy Electricals (BHEL) was engaged in the execution of one block of 65 MW, Jakson Engineers was entrusted with the responsibility of developing another block of 65 MW with the deployment of indigenous solar cells and modules.


The project, using poly crystalline solar technology, is expected to have a yield of 216.372 million units (MU) per year. The power generated from the project will be supplied to Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO). The TANGEDCO has signed a Power Purchase Agreement (PPA) with the NLCIL for a period of 25 years at a preferential tariff of ₹5.10 (~$0.08)/kWh.

The commissioning of this project is in lines with the government’s renewable energy targets for the year 2022. According to Mercom’s research, of the total 130 MW, 40 MW was commissioned by the NLCIL in August 2017.

In December 2016, NLCIL tendered 500 MW solar project to be constructed in Tamil Nadu and another 250 MW in Odisha.

According to Mercom’s India Solar Project Tracker, NLC India has commissioned solar projects aggregating 140 MW and has a project pipeline of ~1.2 GW.

NLC India targets to develop 4 GW of solar projects by 2022.

Image credit: NLC India