Under the plans, a 50:50 joint venture between NTPC and the Tamil Nadu Electricity Board (TNEB) will develop a 1,000 MW coal-fired power station due on line by 2011-2012 and located at Ennore in the outskirts of Chennai in Tamil Nadu.

In addition, NTPC is expected to complete the phase II of its Kayamkulam expansion in Kerala bringing some 1,950 MW online by 2011-2012.

In a separate move, the state government of neighbouring Karnataka has invited the private sector to develop a 1,000 MW coal-fired plant. The location is due to be determined following expressions of interest from potential developers. The plant is to be developed with a 25-year power purchase agreement