BL reported that Neyveli Lignite Corporation Limited will set up a 2,000 MW coal based power plant in Orissa in a JV holding a majority stake of 51%.

Mr S Jayaraman CMD of Neyveli Lignite said that "There was some delay in acquiring land, but we are solving it soon." He added that it would implement a coal based 1,000 MW power plant at Tuticorin. A JV firm by NLC and Tamil Nadu Electricity Board would implement the project.

Mr Jayaraman said that "We have tied up with a consortium of banks for INR 2,500. We may go for an additional loan of INR 1,800 crore in 2008."

Neyveli Lignite will also set up a mining project in Orissa in partnership with Hindalco and Mahanandi Coalfields.