An enterprise of the Government of India in the mining industry, NLC India Limited will develop 1 GW of solar power capacity in the southern Indian state of Tamil Nadu. As per the agreement signed with the Tamil Nadu Generation and Distribution Corporation (TANGEDCO), NLC India will set up lignite mines with 15.5 million tons annual capacity, and a 2,640 MW lignite based thermal power project, apart from the 1 GW solar project.
In all, it will invest INR 238 billion ($3.32 billion) to set up mines and power projects here, generating direct employment for 1,250 people and indirect employment for 7,500 people.
In return TANGEDCO, acting on behalf of the Tamil Nadu government, will support NLC India by way of necessary infrastructural support in setting up the projects.
NLC India already has 492 MW of renewable energy projects in Tamil Nadu and another 909 MW solar projects under implementation, it said in a Bombay Stock Exchange (BSE) filing reporting the memorandum of understanding (MoU) it signed with TANGEDCO.
The mining company switched on 2 solar projects of 65 MW each in Neyveli township in Tamil Nadu in January 2018, where it already operates a 10 MW solar project (see 180 MW PV Capacity Commissioned In India). Before that, it launched a tender for 709 MW solar power projects to be developed in the southern state (see NLC Tenders 709 MW For Tamil Nadu).
Out of the 709 MW, it has issued letters of awards for 509 MW capacity to 3 bidders for 100 MW each, 209 MW to one bidder and another 100 MW each to 2 bidders. At present, project engineering activities are in progress.
Another 500 MW solar power capacity in Tamil Nadu that NLC is developing in the state, it has awarded contracts to 4 firms for 100 MW each and for 50 MW each to 2 other firms. For these projects, engineering and erection activities are in progress, according to information on NLC India's website.