NLC Tamil Nadu Power Limited’s (NTPL) 1000 MW Thermal Power Project at Tuticorin is expected to cost Rs. 6,539.47 Crore which is 33% more than the earlier projected cost of Rs. 4909.54 crore. As a result of this, tariff will go up by Rs. 1.20 per unit from Rs. 2.91 per unit to Rs. 4.11 per unit as per CERC regulation.
NTPL, a joint venture between Neyveli Lignite Corporation and TANGEDCO hopes to commission its first unit in December 2013 and the second one in March next year. The Fuel Supply Agreement for supply of coal has been signed with Mahanadi Coalfields Limited in September, 2013.
Of the total 1,000 MW of power to be generated from the project, Tamil Nadu will be the largest beneficiary getting 387 MW followed by 254.6 MW of power being allocated to Andhra Pradesh.
Moreover, the states of Karnataka and Kerala will draw 157.9 MW and 72.5 MW, respectively with additional 118.5 MW of power not allocated to any state till date.