Government-owned mining and power generating company, NLC India (NLCIL), has announced that it has signed a memorandum of understanding (MoU) with the Tamil Nadu government to develop 2,640 MW of lignite-based thermal power projects and 1,000 MW of solar energy projects in the state.
The projects are expected to cost ₹238 billion ($3.34 billion). The MoU was signed between NLCIL and the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) on behalf of Tamil Nadu Government. As per the MoU, the Tamil Nadu government will provide facilitation to NLCIL in the form of infrastructural support for the development of these projects.
In its filing to the Indian stock exchange, the company has also announced the signing of agreements to set up 15.5 million tonnes per annum capacity of lignite mines. NLCIL claims that the investment in the energy and mining projects would create direct and indirect employment opportunities for 1,250 and 7,500 people respectively.
NLCIL currently has 492 MW of renewable energy projects in Tamil Nadu with another 909 MW of solar energy projects under implementation pipeline. NLCIL also has a joint venture project of 1,000 MW of coal-based thermal power station with TANGEDCO.
In July, 2017 NLC India had tendered a solar EPC contract for 709 MW to be developed in the state of Tamil Nadu.
Then in November 2018, TANGEDCO issued a tender for the development of 500 MW of wind power projects in the Tamil Nadu.
Recently, Mercom reported that in a bid to diversify its portfolio, NLCIL had announced its foray into power trading business.
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