Chennai, Oct 10 The state-run Neyveli Lignite Corporation Limited (NLC) has sought the central government's permission to commission a 250-MW power project in Rajasthan, a company official said.

The company already has a mandate to build two 125 MW project at Barsingsar village in Rajasthan.

"Pre-commissioning activities are already on for commissioning the first unit of 125 MW power plant by the end of this month," V. Sethuraman, director (Power) told IANS from Neyveli on phone.

"We have approached the central government for setting up one more 250 MW power plant the same location. Similarly sanction for setting up 2x500 MW power plant at Neyveli has been sought," Sethuraman said.

Already the company has commissioned its 2.1 million ton per annum (mtpa) lignite mine at Barsingsar to feed the two power plants.

For the Rs. 3,354 crore turnover NLC this will be its first Circulating Fluidised Bed Combustion (CFBC) power plant that will go on stream.

The second unit at Barsingsar is expected to be commissioned next January.

Queried about the status of the company's 2x250 MW project using CFBC technology at Neyveli he said the project is experiencing delays and will be commissioned next year.

He said the company's 2x500 MW coal based power project at Tuticorin partnering with Tamil Nadu Electricity Board (TNEB) is progressing as per schedule with the award of boiler, turbine and generator (BTG) contract to Bharat Heavy Electricals Limited (BHEL) and the coal handling systems to Larsen and Toubro.

"The total project is divided into nine packages. Orders for the remaining seven packages will be soon placed," Sethuraman said.

He said till date around Rs. 200 crore has been contributed by NLC and TNEB jointly towards the project as their share of equity.

NLC owns 89 percent while TNEB holds the balance 11 percent in the NLC Tamil Nadu Power Limited that will own the Tuticorin power project.

The central government owned Rural Electrification Corporation (REC) agreed to lend Rs. 3,437 crore for the Rs. 4,900-crore project and the balance will be funded by equity.

According to Sethuraman, a total of Rs. 200 crore has been contributed by the two promoting companies in proportion of their shareholding for the project and funds will be drawn as the project progresses. (IANS)