Neyveli Lignite to borrow Rs. 1,185 cr for TN power project.

The board of NLC Tamil Nadu Power Limited (NTPL), a joint venture company involving Neyveli Lignite Corporation, gave its nod to borrow Rs 1,184.92 crore from Power Finance Corporation.

The announced borrowing would help NLC meet capital expenditure for works on the ongoing 1000 Mw (2x500 Mw) Thoothukudi power project in Tamil Nadu.

The Unit I of the project involving 500 Mw capacity had already been declared for commercial operation on June 6, 2015, and the commissioning of 500 Mw Unit-II is expected soon.

NLC said the announced borrowing would result in reduced interest costs.

Officials of Power Finance Corporation today met Neyveli Lignite Corporation and an agreement for Rs 1,184.92 crore lending to the project was signed by the project director, general manger (finance) for new projects and chief financial officer of NTPL.

BS