Tamil Nadu Generation and Distribution Corporation (TANGEDCO) is planning to set up 1,320 MW thermal power plant at Udangudi town in Tuticorin district of Tamil Nadu.

TANGEDCO the executing agency for thermal power projects in the state will carry out the project on EPC basis. It will also finance the debt component of the project, which will be around 75 per cent of the total project. The cost of the EPC component of the project is Rs 5,700 crore. The project coming up over 420 ha will is estimated to cost Rs 8,400 crore.  Soon the contract for the project will be awarded.

Earlier in 2008 the project was expected to be set by a JV project between the erstwhile Tamil Nadu Electricity Board (TNEB) and the Bharat Heavy Electricals (BHEL), but it got stuck because of coal linkage issue. Currently, TANGEDCO has invited bids for Udangudi plant.

Also, TANGEDCO is expected to float bids for another 1,320-MW thermal power project at Ennore Special Economic Zone. The project will be implemented using imported coal. The proposed plant will come up on the site that was once used as an ash dyke for the North Chennai Thermal Power Station.