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• State-owned Neyveli Lignite Corporation (NLC) has signed an agreement with the country's largest lender State Bank of India for its proposed Rs 5907.11 crore 2x500 MW thermal power project in that city. NLC plans to set up the project, replacing the five decade old 600 MW Thermal Power Station-I.To meet part of 70 per cent debt requirement of the project, NLC signed a "Rupee Term Loan agreement" with SBI for Rs 2500 crore, NLC said in astatement. Funding will be debt:equity ratio of 70:30, it said. NLC Director (Finance) K Sekar and SBI Deputy Managing Director and Group Executive S B Nayar exchanged documents in the presence of NLC CMD A R Ansari and SBI Chairman Pratip Chaudhuri. "The Neyveli New Thermal Power Station was sanctioned at an estimated cost of Rs 5,907.11 crore, including interest during construction of Rs 559.03 crore and foreign exchange component of Rs 969.81 crore", it said. The fuel (lignite) for the project would be supplied by mines operated by NLC. The power generated from the unit would be served to the Southern states. TANGEDCO (Tamilnadu Generation and Distribution Corporation Ltd) and Distribution Companies (DISCOMS) of other States, have signed the Power Purchase agrements(PPA) to share the electricity generated from the unit. The first unit is expected to be commissioned in June 2015 and the second unit in December 2015. NLC currently operates lignite mines at Neyveli and one at Barsingsar, Rajasthan of total capacity of 30.60 million tonnes per annum. It also runs three thermal power stations at Neyveli and one at Barsingar with a total installed capacity of 2740 MW, the statement added.

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